MAT The Management & Accountancy College

THE CASH BOOK AND BANK RECONCILLIATIONS.

Exercises on................. Bank Reconciliation

Question 1
From the following draw up a bank reconciliation statement from details as on 31
December 2008:
$
Cash at bank as per bank column of the Cash book 678
Unpresented cheques 256
Cheques received and paid into the bank, but not yet entered on
the bank statement 115
Credit transfers entered as banked on the bank statement
but not entered in the Cash book 56
Cash at bank as per bank statement 875
Question 2
Draw up a bank reconciliation statement, after writing up the cashbook up-to-date,
ascertaining the balance on the bank statement, from the following as on 31 march
2007.
$
Cash at bank as per bank column of the cash book (Dr) 3,896
Bankings made but not yet entered on bank statement 606
Bank charges on bank statement but not yet in cash book 28
Unpresented cheques C Clarke 117
Standing order to ABC Ltd entered on bank statement, but not in cash book 55
Credit transfer from A Wood entered on bank statement, but not yet in cash book 18
Question 3
The summary of the bank column in the cashbook of EMI Ltd for the year ending 30
November 2006 is as follows:
$
Opening balance 1,654
Receipts 332,478
-----------
334,132
Payments 316,735
-----------
Closing balance 17,397
------------
Your investigation of the accounting records for this period reveals the following
information:
(a) Cheques paid to suppliers of $ 1,435 have not yet been presented at the bank, and
cheques paid in to the bank of $1,620 on 30 November 1996 have not yet been
credited to the company's account.
(b) Standing orders entered in the bank statement have been omitted from the
cashbook in respect of lease payments on company car, 12 months at $96 per month,
and annual insurance of $150.
(c) Bank charges of $452 shown in the bank statement have not been entered in the
cashbook.
(d) A cheque drawn for $127 has been entered in the cashbook as $172, and a
cashbook page on the receipts side has been under added by $200.

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MAT-QR-ACCA-F3 June 2010 EXAMINATIONS Lecturer: Isingoma Edward
MAT The Management & Accountancy College

(e) A cheque for $238 has been debited to the company's bank account in error by the
bank.
(f) The bank statement shows a favourable balance as at 30 November 2006 of
$15,465.

Required:
Bank reconciliation statement as at 30th November, together with a corrected
cashbook position.

Question 4.(Left out)

Question 5
At 31 May, the bank statement of Sampras Services Ltd shows a balance of $1,750 in
the company's favour. In checking the bank statement, it is noted that quarterly bank
charges of $1,250 have not been recorded in the cash book.

In addition, cheques totalling $2,155 have been sent put by the company prior to 31
May, but have yet to be presented through the bank account.

On 31 May, the cashier used the local branch of the bank, rather than the company's
branch to lodge cheques from customers totalling $863. The lodgement did not reach
the company's branch until 4 June.

What is the amount of the company's cash at bank or bank overdraft at 31 May?

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MAT-QR-ACCA-F3 June 2010 EXAMINATIONS Lecturer: Isingoma Edward