Banking Reconciliation Calculations Quiz
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The closing balance on Frank’s bank account in his general ledger is $2,355 (debit) How should the balance be reported in Frank’s final accounts?
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As a non-current asset
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As a current asset
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As a current liability
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As a non-current liability
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Hey, check out this amazing 'Banking Reconciliation Calculations Quiz' that is given below. We've designed this quiz to test your knowledge regarding the operation of control accounts, types of errors in accounting, correction of errors, and bank reconciliations. Do you think you'll be able to crack this quiz? Let's see how much you're able to score. If you hit more than 70% score, it means that you're a really good accountant.
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- 2.
Bruce prepared the following payables ledger reconciliation statement: Balance on general ledger control account 46,865 credit Payment entered twice in control account $573 credit $47,438 credit Purchase daybook overcast $900 debit Total of list of balances 46,538 credit How should the payables ledger balance be reported on the balance sheet?
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$46,538 as a current asset
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$46,538 as a current liability
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$46,865 as a current asset
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$46,865 as a current liability
Correct Answer
A. $46,538 as a current liabilityExplanation
The payables ledger balance should be reported as a current liability because it represents the amount owed by the company to its creditors. This balance includes the total of the list of balances, which is $46,538 credit, and it indicates the amount that the company needs to pay to its suppliers and vendors. As a liability, this amount is considered a current liability because it is expected to be paid within the next accounting period. Therefore, the correct answer is $46,538 as a current liability.Rate this question:
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- 3.
When the purchases day book was posted to the general ledger, $650 for stationery was posted to the wrong side of the stationery account. Which of the following will correct the error on the stationery account?
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A debit entry of $650
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A debit entry of $1,300
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A credit entry of $650
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A credit entry of $1,300
Correct Answer
A. A debit entry of $1,300 -
- 4.
Which one of the following is a reason for preparing a receivables ledger reconciliation?
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To calculate discounts allowed
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To identify overdue accounts
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To check the calculation of gross profit
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To confirm the accuracy of postings
Correct Answer
A. To confirm the accuracy of postingsExplanation
Preparing a receivables ledger reconciliation is done to confirm the accuracy of postings. This process involves comparing the balances in the receivables ledger with the balances in the general ledger to ensure that they match. Any discrepancies found during this reconciliation process can indicate errors in recording transactions or posting entries. By confirming the accuracy of postings, businesses can ensure that their financial records are reliable and provide an accurate representation of their receivables.Rate this question:
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- 5.
The total of the balances on the individual suppliers accounts in Arnold’s payables ledger is $81,649. The balance on the payables control account in his general ledger is $76,961. He has discovered that an invoice for $4,688 has been posted twice to the correct supplier’s account and that payments totaling $1,606 which he made by standing order have been omitted from his records. What amount should be reported in Arnold’s balance sheet for trade payables?
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$72,273
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$75,355
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$76,961
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$81,649
Correct Answer
A. $75,355Explanation
Arnold's balance sheet for trade payables should report an amount of $75,355. This is calculated by subtracting the amount of the duplicate invoice ($4,688) and adding the omitted payments ($1,606) to the balance on the payables control account ($76,961). Therefore, the correct amount to be reported is $76,961 - $4,688 + $1,606 = $75,355.Rate this question:
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- 6.
Which of the following correctly describe(s) why a bank reconciliation is prepared? (i) to identify entries which have been generated by the bank, but not recorded in the cash book (ii) to identify errors in the entries in the cash book
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(i) only
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(ii) only
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Both (i) and (ii)
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Neither (i) or (ii)
Correct Answer
A. Both (i) and (ii)Explanation
A bank reconciliation is prepared to identify entries that have been generated by the bank but not recorded in the cash book, as well as to identify errors in the entries in the cash book. This process helps to ensure that the bank statement and the cash book balance match and any discrepancies can be identified and resolved.Rate this question:
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- 7.
When Yvonne checked the entries in her cash book with her bank statement seven cheques with a total value of $3,259 had not been presented at her bank. Yvonne had instructed her bank to cancel two of these cheques but did not make any entries in her cash book. The value of the canceled cheques is $642. What entry should Yvonne make in the bank account in her general ledger to correct the balance?
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Debit $642
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Debit $2,617
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Credit $642
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Credit $2,617
Correct Answer
A. Debit $642Explanation
Yvonne should make a debit entry of $642 in the bank account in her general ledger to correct the balance. This is because the canceled cheques were not presented at the bank, so the amount of $642 should be deducted from the balance to reflect the correct amount of funds in the account.Rate this question:
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- 8.
Norma’s trial balance includes a suspense account with a credit balance of $280. She has discovered that a supplier’s invoice for $140 was entered twice in the purchase day book. What is the balance on the suspense account after the error is corrected?
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Nil
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$140 credit
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$280 credit
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$420 credit
Correct Answer
A. $280 creditExplanation
After the error is corrected, the balance on the suspense account will remain at $280 credit. This is because the duplicate entry of the supplier's invoice for $140 was already included in the initial credit balance of $280. Therefore, correcting the error does not change the balance on the suspense account.Rate this question:
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- 9.
When preparing the payables ledger reconciliation for a client, you noted the following errors: (i) an invoice for $215 from a supplier was not entered in the accounting records (ii) an invoice for $465 was recorded as $456 in the purchase day book Which of the errors will cause a difference between the balance on the control account in the nominal ledger and the total of the list of balances from the personal ledger?
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(i) only
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(ii) only
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Both (i) and (ii)
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Neither (i) or (ii)
Correct Answer
A. Neither (i) or (ii) -
- 10.
Eleanor prepared the following bank reconciliation statement: $ Balance per bank statement 12,548 (overdrawn) Outstanding cheques 3,847 16,395 Outstanding lodgements 5,424 10,971 Bank charges 540Balance per general ledger 10,431 (overdrawn)
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$12,548
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$16,395
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$10,971
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$10,431
Correct Answer
A. $10,971Explanation
The correct answer is $10,971. This is the amount of outstanding lodgements according to the bank reconciliation statement prepared by Eleanor. The outstanding lodgements represent deposits that have been made by the company but have not yet been recorded by the bank. By adding the outstanding lodgements to the balance per bank statement, Eleanor determines the adjusted balance per bank statement, which is $10,971.Rate this question:
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Current Version
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Mar 20, 2023Quiz Edited by
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Sep 26, 2010Quiz Created by
Ilyass
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