Accounting Multiple Choice Question – 10 May 2024

In performing a bank reconciliation exercise, which TWO of the following require an entry in the cash book?

A  Cheque paid in, subsequently dishonoured on the bank statement

B  Error by bank

C  Bank charges

D  Lodgements credited after date

E  Outstanding cheques not yet presented

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 2

1. Notcorrect
2. Correct –> Unpresented cheques, bank errors and uncredited lodgements are included in the reconciliation of the bank statement balance to the corrected cash book balance. Bank charges (C) and dishonoured cheques (A) 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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