Accounting Multiple Choice Question – 9 May 2024

Which THREE of the following differences between a company’s, cash book balance and its bank statement balance as at 30 November 2023 would feature in the bank reconciliation statement of Alex plc:

A  Cheques recorded and sent to suppliers before 30 November 2023 but not yet presented for pavment

B  Omission by the bank of a lodgement made by the company on 26 November 2023

C  Bank charges

D  Cheques paid in before 30 November 2023 but not credited by the bank until 3 December 2023

E  A customer’s cheque recorded and paid in before 30 November 2023 but dishonoured by the bank

Select ONE answer:

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

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 2

1. Notcorrect
2. Correct –> A represents unpresented cheques, and B and D represent uncredited lodgements. These are always included in the reconciliation of the bank statement balance to the corrected cash book balance. Bank charges (C) and dishonoured cheques (E) would appear on the bank statement and would have to be corrected in the cash book before reconciliation.
3. Not correct
4. Not correct

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