Bank Reconciliation Statement mcqs

Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.

Bank sent debit advice of $500 to company being interest on overdraft. It wasn’t entered in cash book. Identify the correct adjustment in cash book.

Correct

$500 will be credited

Incorrect

Non-adjustable

Incorrect

$500 will be debited

Incorrect

$1000 will be subtracted

Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?

Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?

Incorrect

Bank charges will be debited in cash book

Incorrect

Bank charges will be added to cash book balance

Correct

Bank charges will be credited in cash book

Incorrect

Bank charges need no adjustment in cash book

A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?

A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book.

Incorrect

$4000 will be credited in the cash book

Incorrect

$4000 will be debited in cash book

Correct

$2000 will be credited in cash book

Incorrect

$2000 will be debited in cash book

A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

A company was entered in hire purchase agreement and had to pay $1000 per month.

Incorrect

$3000 will be added to cash book balance

Correct

$3000 will be subtracted from cash book balance

Incorrect

$1000 will be added to cash book balance

Incorrect

$2000 will be deducted from cash book balance