/ Bank Reconciliations /

1.When preparing a bank reconciliation statement which of the following is a timing difference:

Unpresented cheques
Direct debit payments
Bank charges and interest
BACS receipt

2.When a business bank statement shows a balance of £400 in the bank unpresented cheques total £350 and outstanding lodgements £200, what is the balance in the cash book?

3.The bank columns of Thom Thumb’s cash book for Dec X2 are:

20X2 / Receipts / £ / 20X2 / Payments / £
1 Dec / Balance b/d / 280 / 9 Dec / W Smith - chq 123 / 40
13 Dec / P Jones / 30 / 13 Dec / Rent - chq124 / 50
17 Dec / H Simpson / 72 / 16 Dec / Wages - chq 125 / 85
29 / J Horner / 13 / 20 Dec / B Kay - chq 126 / 20
31 Dec / Balance c/d / 200
395 / 395

His bank statement is as follows. Prepare a bank reconciliation that balances with the cash book.

Bank Statement / Payment / Receipts / Balance
20X2 / £ / £ / £
01 Dec Balance b/f / 280CR
13 Dec Credit / 30 / 310CR
15 Dec Cheque 123 / 40 / 270CR
17 Dec Cheque 124 / 50 / 220CR
22 Dec Credit / 72 / 292CR
23 Dec Cheque 125 / 85 / 207CR

4.The bank columns of S Gerrard’s cash book for Jan X3 are:

20X3 / Receipts / £ / 20X3 / Payments / £
1 Jan / Balance b/d / 800.50 / 2 Jan / P Coutinho – 1351 / 100.00
6 Jan / S Mane / 495.60 / 9 Jan / D Sturridge – 1352 / 398.50
30 Jan / A Lallana / 335.75 / 13 Jan / L Karius – 1353 / 229.70
14 Jan / R Firmino – 1354 / 312.00
23 Jan / J Henderson – 1355 / 176.50

His bank statement shows the following transactions for Jan X3.

Bank Statement / Payment / Receipts / Balance
20X3 / £ / £ / £
1 Jan / Balance b/f / 800.50CR
6 Jan / Cheque 1351 / 100 / 700.50CR
6 Jan / Credit / 495.60 / 1,196.10CR
13 Jan / BACS TK Supplies / 716.50 / 1,912.60CR
20 Jan / Cheque 1352 / 398.50 / 1,514.10CR
23 Jan / Direct Debit – Omni Finance / 207.95 / 1,306.15CR
26 Jan / Cheque 1353 / 229.70 / 1,076.45CR
31 Jan / Bank Interest / 5.50 / 1,081.95CR

Check the items on the bank statement against the cash book and update the cash book accordingly. Clearly show the balance c/d on 31 Jan X3.

Prepare the bank reconciliation statement as at 31 Jan X3.

5.The bank columns of LyraBelacqua cash book for May X5 are as follows:

20X5 / Receipts / £ / 20X5 / Payments / £
1 May / Balance b/d / 300 / 3 May / Will Parry – 714 / 28
7 May / Cash / 162 / 14 May / Mrs Coulter – 715 / 50
17 May / John Faa / 89 / 28 May / SerafinaPekkala – 716 / 110
27 May / Cash / 60
28 May / Cash / 40

Her bank statement shows the following transactions for May X5.

Bank Statement / Payment / Receipts / Balance
20X5 / £ / £ / £
1 May / Balance b/f / 400CR
2 May / Cheque 713 / 100 / 300CR
5 May / Cheque 714 / 28 / 272CR
7 May / Credit / 162 / 434CR
17 May / Standing order to Golden Compass / 25 / 409CR
19 May / Credit / 89 / 498CR
20 May / Cheque 715 / 50 / 448CR
27 May / Credit / 60 / 508CR
31 May / Bank charges / 10 / 498CR

Check the items on the bank statement against the cash book and update the cash book accordingly. Clearly show the balance c/d on 31 May X5.

Prepare the bank reconciliation statement as at 31 May X5.

6.On 4 Jun IorekByrnison received a bank statement which showed May’s transactions:

Bank Statement / Payment / Receipts / Balance
20X5 / £ / £ / £
1 May / Balance b/f / 3,802CR
2 May / Cheque 1761 / 150 / 3,652CR
10 May / Cheque 1762 / 751 / 2,901CR
11 May / Cheque 1763 / 268 / 2,633CR
13 May / Cheque 1764 / 1,045 / 1,588CR
14 May / BACS credit – Ma Costa / 2,596 / 4,184CR
18 May / Direct Debit – The Authority / 198 / 3,986CR
20 May / Farder Coram Direct Debit / 1,005 / 2,981CR
25 May / Direct Debit – Lee Scoresby / 254 / 2,727CR
25 May / Bank charges / 20 / 2,707CR

His cash book is as follows:

20X5 / Receipts / £ / 20X5 / Payments / £
1 May / Balance b/f / 3,652 / 4 May / Baruch – 1762 / 751
26 May / Balthamos / 832 / 4 May / Lady Salmakia – 1763 / 268
28 May / IofurRakinson / 1,119 / 7 May / Lord Asriel / 1,895
7 May / Mary Malone – 1765 / 1,045

Check the items on the bank statement against the cash book and update the cash book accordingly. Clearly show the balance c/d on 31 May X5, and the balance brought forward.

Prepare the bank reconciliation statement as at 31 May X5.

7.On 30 Jun Arwen received a bank statement as at 27 Jun X5:

Bank Statement / Payment / Receipts / Balance
20X5 / £ / £ / £
1 Jun / Balance b/f / 768CR
4 Jun / Cheque – 4125 / 427 / 341CR
5 Jun / BACS Credit – Barliman Butterbur / 1,122 / 1,463CR
18 Jun / Cheque – 4127 / 4,200 / 2,737DR
20 Jun / Direct debit - Beechbone / 850 / 3,587DR
23 Jun / Direct debit – Grimbold / 2,486 / 1,101DR
26 Jun / BACS Credit – Celeborn / 4,110 / 3,009CR
27 Jun / Direct debit - Denethor / 275 / 2,734CR
27 Jun / Cheque – 4128 / 1,062 / 1,672CR

Her cash book is as follows:

20X5 / Receipts / £ / 20X5 / Payments / £
1 Jun / Balance b/d / 1,890 / 1 Jun / Brandybuck – 4125 / 427
20 Jun / Boromir / 1,200 / 3 Jun / Tom Bombadil – 4126 / 760
24 Jun / Farmer Maggot / 4,750 / 10 Jun / Peregrin Took – 4127 / 4,200
24 Jun / Gamling / 8,950 / 20 Jun / Mordor Supplies – 4128 / 1,062

Check the items on the bank statement against the cash book and update the cash book accordingly. Clearly show the balance c/d on 27 Jun X5, and the balance brought forward.

Prepare the bank reconciliation statement as at 27 Jun X5.