Chapter 15 Bank Reconciliations.pdf

Financial accounting F3 acca Practice questions Financial accounting F3 acca Practice questions Financial accounting F3 acca Practice questions

Bank Reconciliations

Prepared for Educational Purposes

August 14, 2025

Contents

2 Part 2: Answers with Detailed Explanations 9

1

1 Part 1: List of Questions

This section contains 50 multiple-choice questions based on bank reconciliations, includ-ing adjustments for cash book errors, outstandinclud-ing cheques, and dishonoured cheques Numbers are left-aligned from 1 to 50

1 The following bank reconciliation statement has been prepared by a trainee accoun-tant: Overdraft per bank statement 9,264, less: Outstanding cheques 21,984, 12,720, add: Deposits credited after date 40,056, Cash at bank as calculated above 52,776 What should be the correct balance per the cash book?

a 27,336 balance at the bank

b 8,808 balance overdrawn

c 52,776 balance at the bank as stated

d 8,808 balance at the bank

2 In preparing a companys bank reconciliation statement at March 2006, the following items are causing the difference between the cash book balance and the bank statement balance: (1) Bank charges $912, (2) Error by bank $2,400 (cheque incorrectly debited), (3) Lodgements not credited $10,992, (4) Outstanding cheques $3,540, (5) Direct debit

$840, (6) Cheque paid in by the company and dishonoured $960 Which of these items will require an entry in the cash book?

a 1, 5 and 6

b 2, 4 and 6

c 3, 4 and 5

d 1, 2 and 3

3 Which of the following statements about bank reconciliations are correct? (1) In preparing a bank reconciliation, unpresented cheques must be deducted from a balance

of cash at bank shown in the bank statement (2) A cheque from a customer paid into the bank but dishonoured must be corrected by making a debit entry in the cash book (3) An error by the bank must be corrected by an entry in the cash book (4)

An overdraft is a debit balance in the bank statement

a 2 and 4

b 1 and 4

c 2 and 3

d 1 and 3

4 The cash account shows a balance of $13,620 overdrawn at 30 September 2015 It

is later discovered that a standing order for $300 has been entered twice, and that

a dishonoured cheque for $1,080 has been debited in the cash account instead of credited What is the correct balance?

a $12,240 overdrawn

b $15,000 overdrawn

c $14,400 overdrawn

d $15,480 overdrawn

5 The bank statement on 31 December 2014 showed an overdraft of $1,920 When reconciling the bank statement it was discovered that a cheque drawn by the company for $192 had not been presented for payments, and that a cheque for $312 received from a customer has been dishonoured on 28 December, but that the company had not yet been informed of this by the bank What is the correct bank balance to be shown in the Statement of Financial Position?

a $1,728 overdrawn

b $2,112 overdrawn

c $2,424 overdrawn

d $1,800 overdrawn

6 The cash book shows a balance of $5,000 Outstanding cheques total $1,200, and deposits not credited are $800 What is the bank statement balance?

a $4,600

b $5,400

c $4,200

d $5,800

7 Which of the following requires an adjustment in the cash book?

a Outstanding cheques

b Bank charges

c Deposits not credited

d Bank error

8 The bank statement shows a balance of $10,000 Outstanding cheques are $2,000, and deposits not credited are $3,000 What is the cash book balance?

a $9,000

b $11,000

c $8,000

d $12,000

9 A companys cash book shows a balance of $7,500 overdrawn A direct debit of $500 was not recorded in the cash book What is the correct cash book balance?

a $7,000 overdrawn

b $8,000 overdrawn

c $7,500 overdrawn

d $6,500 overdrawn

10 Which of the following statements is correct?

a Outstanding cheques require a cash book entry

b Bank charges are adjusted in the bank reconciliation

c Dishonoured cheques are adjusted in the bank statement

d Deposits not credited are recorded in the cash book

11 The bank statement shows an overdraft of $3,000 Outstanding cheques are $1,500, and a dishonoured cheque of $600 was not recorded in the cash book What is the cash book balance?

a $4,100 overdrawn

b $3,600 overdrawn

c $4,500 overdrawn

d $3,100 overdrawn

12 Which of the following does not require an entry in the cash book?

a Bank charges

b Direct debit

c Outstanding cheques

d Dishonoured cheque

13 The cash book shows a balance of $12,000 Bank charges of $200 and a direct debit

of $300 were not recorded What is the correct cash book balance?

a $11,500

b $12,500

c $11,800

d $11,200

14 The bank statement shows a balance of $15,000 Outstanding cheques are $4,000, and deposits not credited are $2,500 What is the cash book balance?

a $16,500

b $13,500

c $12,500

d $17,500

15 Which of the following is adjusted in the bank reconciliation statement?

a Bank charges

b Direct debit

c Dishonoured cheque

d Outstanding cheques

16 The cash book shows a balance of $8,000 overdrawn A bank error credited $1,000 incorrectly What is the bank statement balance?

a $7,000 overdrawn

b $9,000 overdrawn

c $8,000 overdrawn

d $6,000 overdrawn

17 A companys cash book shows a balance of $20,000 A dishonoured cheque of $1,500 was not recorded What is the correct cash book balance?

a $18,500

b $21,500

c $20,000

d $19,000

18 The bank statement shows an overdraft of $5,000 Outstanding cheques are $2,000, and deposits not credited are $1,200 What is the cash book balance?

a $5,800 overdrawn

b $6,200 overdrawn

c $4,800 overdrawn

d $3,800 overdrawn

19 Which of the following requires an entry in the cash book?

a Outstanding cheques

b Deposits not credited

c Bank charges

d Bank error

20 The cash book shows a balance of $10,000 overdrawn A standing order of $400 was entered twice What is the correct cash book balance?

a $9,600 overdrawn

b $10,400 overdrawn

c $9,200 overdrawn

d $10,800 overdrawn

21 The bank statement shows a balance of $25,000 Outstanding cheques are $5,000, and

a bank error debited $1,000 incorrectly What is the cash book balance?

a $21,000

b $29,000

c $20,000

d $26,000

22 Which of the following is a timing difference in bank reconciliations?

a Bank charges

b Direct debit

c Outstanding cheques

d Dishonoured cheque

23 The cash book shows a balance of $30,000 Bank charges of $500 and a dishonoured cheque of $1,000 were not recorded What is the correct cash book balance?

a $28,500

b $29,500

c $31,500

d $28,000

24 The bank statement shows an overdraft of $7,500 Outstanding cheques are $3,000, and deposits not credited are $2,000 What is the cash book balance?

a $8,500 overdrawn

b $6,500 overdrawn

c $9,500 overdrawn

d $5,500 overdrawn

25 Which of the following does not affect the cash book balance?

a Bank charges

b Direct debit

c Outstanding cheques

d Dishonoured cheque

26 The cash book shows a balance of $15,000 A direct debit of $600 and bank charges

of $400 were not recorded What is the correct cash book balance?

a $14,000

b $16,000

c $13,600

d $14,600

27 The bank statement shows a balance of $18,000 Outstanding cheques are $3,500, and deposits not credited are $2,000 What is the cash book balance?

a $19,500

b $16,500

c $20,500

d $15,500

28 Which of the following requires an adjustment in the cash book?

a Outstanding cheques

b Bank error

c Dishonoured cheque

d Deposits not credited

29 The cash book shows a balance of $12,000 overdrawn A dishonoured cheque of $800 was not recorded What is the correct cash book balance?

a $11,200 overdrawn

b $12,800 overdrawn

c $12,000 overdrawn

d $13,600 overdrawn

30 The bank statement shows an overdraft of $4,000 Outstanding cheques are $1,800, and a direct debit of $500 was not recorded in the cash book What is the cash book balance?

a $4,700 overdrawn

b $3,300 overdrawn

c $5,300 overdrawn

d $2,700 overdrawn

31 Which of the following is adjusted in the bank reconciliation statement?

a Bank charges

b Direct debit

c Outstanding cheques

d Dishonoured cheque

32 The cash book shows a balance of $22,000 A bank error credited $1,500 incorrectly What is the bank statement balance?

a $23,500

b $20,500

c $22,000

d $24,500

33 The cash book shows a balance of $17,000 overdrawn A standing order of $600 was entered twice What is the correct cash book balance?

a $16,400 overdrawn

b $17,600 overdrawn

c $16,000 overdrawn

d $18,200 overdrawn

34 The bank statement shows a balance of $30,000 Outstanding cheques are $6,000, and deposits not credited are $4,000 What is the cash book balance?

a $28,000

b $32,000

c $26,000

d $34,000

35 Which of the following requires an entry in the cash book?

a Outstanding cheques

b Deposits not credited

c Bank charges

d Bank error

36 The cash book shows a balance of $25,000 Bank charges of $700 and a dishonoured cheque of $1,200 were not recorded What is the correct cash book balance?

a $23,100

b $24,100

c $25,900

d $22,900

37 The bank statement shows an overdraft of $9,000 Outstanding cheques are $2,500, and deposits not credited are $1,500 What is the cash book balance?

a $10,000 overdrawn

b $8,000 overdrawn

c $11,000 overdrawn

d $7,000 overdrawn

38 Which of the following does not require an entry in the cash book?

a Bank charges

b Direct debit

c Outstanding cheques

d Dishonoured cheque

39 The cash book shows a balance of $35,000 A direct debit of $800 and bank charges

of $600 were not recorded What is the correct cash book balance?

a $33,600

b $34,600

c $35,400

d $32,600

40 The bank statement shows a balance of $40,000 Outstanding cheques are $7,000, and deposits not credited are $5,000 What is the cash book balance?

a $38,000

b $42,000

c $36,000

d $44,000

41 Which of the following is adjusted in the bank reconciliation statement?

a Bank charges

b Direct debit

c Outstanding cheques

d Dishonoured cheque

42 The cash book shows a balance of $14,000 overdrawn A dishonoured cheque of $1,000 was not recorded What is the correct cash book balance?

a $13,000 overdrawn

b $15,000 overdrawn

c $14,000 overdrawn

d $16,000 overdrawn

43 The bank statement shows an overdraft of $6,000 Outstanding cheques are $2,200, and a bank error debited $800 incorrectly What is the cash book balance?

a $7,800 overdrawn

b $5,200 overdrawn

c $8,200 overdrawn

d $4,800 overdrawn

44 Which of the following is a timing difference in bank reconciliations?

a Bank charges

b Direct debit

c Outstanding cheques

d Dishonoured cheque

45 The cash book shows a balance of $45,000 Bank charges of $900 and a dishonoured cheque of $1,500 were not recorded What is the correct cash book balance?

a $42,600

b $43,600

c $44,600

d $41,600

46 The bank statement shows a balance of $50,000 Outstanding cheques are $8,000, and deposits not credited are $6,000 What is the cash book balance?

a $48,000

b $52,000

c $46,000

d $54,000

47 Which of the following requires an entry in the cash book?

a Outstanding cheques

b Deposits not credited

c Bank charges

d Bank error

48 The cash book shows a balance of $20,000 overdrawn A standing order of $700 was entered twice What is the correct cash book balance?

a $19,300 overdrawn

b $20,700 overdrawn

c $18,600 overdrawn

d $21,400 overdrawn

49 The bank statement shows an overdraft of $12,000 Outstanding cheques are $3,000, and a direct debit of $600 was not recorded in the cash book What is the cash book balance?

a $14,600 overdrawn

b $11,400 overdrawn

c $15,600 overdrawn

d $9,600 overdrawn

50 The cash book shows a balance of $60,000 A bank error credited $2,000 incorrectly What is the bank statement balance?

a $58,000

b $62,000

c $60,000

d $64,000

51 Which of the following does not affect the cash book balance?

a Bank charges

b Direct debit

c Outstanding cheques

d Dishonoured cheque

2 Part 2: Answers with Detailed Explanations

1 b 8,808 balance overdrawn Explanation: Bank statement overdraft $9,264 -

Out-standing cheques $21,984 + Deposits not credited $40,056 = $8,808 overdrawn (cash book balance)

2 a 1, 5 and 6 Explanation: Bank charges ($912), direct debit ($840), and

dishon-oured cheque ($960) require cash book entries as they are not yet recorded Bank error, lodgements not credited, and outstanding cheques are adjusted in the reconcil-iation

3 a 2 and 4 Explanation: Dishonoured cheques require a debit in the cash book

(2, correct) An overdraft is a debit balance in the bank statement (4, correct) Unpresented cheques are deducted in reconciliation (1, ambiguous) Bank errors are not corrected in the cash book (3, incorrect)

4 a $12,240 overdrawn Explanation: Cash book overdraft $13,620 - Standing order

error $300 - Dishonoured cheque error $1,080 = $12,240 overdrawn

5 c $2,424 overdrawn Explanation: Bank statement overdraft $1,920 - Outstanding

cheque $192 - Dishonoured cheque $312 = $2,424 overdrawn (cash book balance for Statement of Financial Position)

6 a $4,600 Explanation: Cash book $5,000 + Outstanding cheques $1,200 - Deposits

not credited $800 = $4,600 (bank statement balance)

7 b Bank charges Explanation: Bank charges are recorded by the bank but not in

the cash book, requiring an entry

8 a $9,000 Explanation: Bank statement $10,000 + Outstanding cheques $2,000

-Deposits not credited $3,000 = $9,000 (cash book balance)

9 b $8,000 overdrawn Explanation: Cash book overdraft $7,500 + Direct debit $500

= $8,000 overdrawn

10 c Dishonoured cheques are adjusted in the cash book Explanation: Dishonoured

cheques require a cash book entry to reverse the deposit

11 c $4,500 overdrawn Explanation: Bank statement overdraft $3,000 - Outstanding

cheques $1,500 + Dishonoured cheque $600 = $4,500 overdrawn

12 c Outstanding cheques Explanation: Outstanding cheques are timing differences,

adjusted in the reconciliation, not the cash book

13 a $11,500 Explanation: Cash book $12,000 - Bank charges $200 - Direct debit $300

= $11,500

14 a $16,500 Explanation: Bank statement $15,000 + Outstanding cheques $4,000

-Deposits not credited $2,500 = $16,500

15 d Outstanding cheques Explanation: Outstanding cheques are timing differences,

adjusted in the bank reconciliation

16 a $7,000 overdrawn Explanation: Cash book $8,000 overdrawn - Bank error $1,000

= $7,000 overdrawn (bank statement balance)

17 a $18,500 Explanation: Cash book $20,000 - Dishonoured cheque $1,500 = $18,500.

18 a $5,800 overdrawn Explanation: Bank statement overdraft $5,000 - Outstanding

cheques $2,000 + Deposits not credited $1,200 = $5,800 overdrawn

19 c Bank charges Explanation: Bank charges require a cash book entry as they are

not yet recorded

20 a $9,600 overdrawn Explanation: Cash book overdraft $10,000 - Standing order

error $400 = $9,600 overdrawn

21 a $21,000 Explanation: Bank statement $25,000 + Outstanding cheques $5,000

-Bank error $1,000 = $21,000

22 c Outstanding cheques Explanation: Outstanding cheques are timing differences,

adjusted in the reconciliation

23 a $28,500 Explanation: Cash book $30,000 - Bank charges $500 - Dishonoured

cheque $1,000 = $28,500

24 a $8,500 overdrawn Explanation: Bank statement overdraft $7,500 - Outstanding

cheques $3,000 + Deposits not credited $2,000 = $8,500 overdrawn

25 c Outstanding cheques Explanation: Outstanding cheques do not affect the cash

book; they are adjusted in the reconciliation

26 a $14,000 Explanation: Cash book $15,000 - Direct debit $600 - Bank charges $400

= $14,000

27 a $19,500 Explanation: Bank statement $18,000 + Outstanding cheques $3,500

-Deposits not credited $2,000 = $19,500

28 c Dishonoured cheque Explanation: Dishonoured cheques require a cash book entry

to reverse the deposit

29 b $12,800 overdrawn Explanation: Cash book overdraft $12,000 + Dishonoured

cheque $800 = $12,800 overdrawn

30 a $4,700 overdrawn Explanation: Bank statement overdraft $4,000 - Outstanding

cheques $1,800 + Direct debit $500 = $4,700 overdrawn

31 c Outstanding cheques Explanation: Outstanding cheques are timing differences,

adjusted in the reconciliation

32 a $23,500 Explanation: Cash book $22,000 + Bank error $1,500 = $23,500 (bank

statement balance)

33 a $16,400 overdrawn Explanation: Cash book overdraft $17,000 - Standing order

error $600 = $16,400 overdrawn

34 a $28,000 Explanation: Bank statement $30,000 + Outstanding cheques $6,000

-Deposits not credited $4,000 = $28,000

35 c Bank charges Explanation: Bank charges require a cash book entry as they are

not yet recorded

36 a $23,100 Explanation: Cash book $25,000 - Bank charges $700 - Dishonoured

cheque $1,200 = $23,100

37 a $10,000 overdrawn Explanation: Bank statement overdraft $9,000 - Outstanding

cheques $2,500 + Deposits not credited $1,500 = $10,000 overdrawn

38 c Outstanding cheques Explanation: Outstanding cheques do not require a cash

book entry; they are adjusted in the reconciliation

39 a $33,600 Explanation: Cash book $35,000 - Direct debit $800 - Bank charges $600

= $33,600

40 a $38,000 Explanation: Bank statement $40,000 + Outstanding cheques $7,000

-Deposits not credited $5,000 = $38,000

41 c Outstanding cheques Explanation: Outstanding cheques are timing differences,

adjusted in the reconciliation

42 b $15,000 overdrawn Explanation: Cash book overdraft $14,000 + Dishonoured

cheque $1,000 = $15,000 overdrawn

43 a $7,800 overdrawn Explanation: Bank statement overdraft $6,000 - Outstanding

cheques $2,200 + Bank error $800 = $7,800 overdrawn