Day: April 29, 2024

Which TWO of the following statements about bank reconciliations are correct?

A  In preparing a bank reconciliation, unpresented cheques must be deducted from a balance of cash at bank shown in the bank statement.

B  A cheque from a customer paid into the bank but dishonoured must be corrected by making a debit entry in the cash book.

C  An error by the bank must be corrected by an entry in the cash book.

D  An overdraft is a debit balance in the bank statement.

E  Bank charges that only appear on the bank statement must be debited in the cash book.

Select ONE answer:

1. A&B
2. A&C
3. A&D
4. A&E

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – A&D – Note that bank charges in the bank statement would be credited to the cash book, not debited
4. Not correct

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