List of all Bank Reconciliation errors or differences
Professional Bookkeepers would probably skip this step of writing a list of questions.
Instead, as soon as they come to the first problem, they will look it up, figure out how to fix it and sort it out right away.
To save time by not double-handling the same problem, that is, they are not highlighting and writing down the problem (first handling) and then later on going to investigate why the problem occurred and then fixing it (second or even third handling).
- Rose continues to move down through the Bank Statement with her ruler and ticking the matching transactions, or highlighting transactions on the Bank Statement that do not match.
- With each highlighted entry, Rose continues to write the differences on her queries list.
Here is the final list:
Bank Reconciliation Exercises and Answers - Questions
Bank Reconciliation Exercises and Answers:
List of Questions, Answers and Solutions
Why is $350 entered twice?
The receipt from Office Supplies shows her that the Cash Machine (also known as a Cash Till) was $300 and the Petty Cash Box was $50.
One of the $350 entries must be reversed ('removed' from the Cashbook).
Why are the kitchen supplies $55 not on the bank statement?
The Cashbook Reference column indicates ‘Cash’ was used. Rose looks in the Petty Cash box and finds the receipts in there. The items were brought with money from the Petty cash box and so they should not be in the Cashbook for the bank account.
This entry must be ‘removed’ from the bank Cashbook page, and a new record must be started for the transactions in and out of the Petty Cash box. This can be done with a Petty Cash Log.
Why is BT payment of $102.50 split
in the Cashbook?
It is split because two different
types of expenses were purchased and so they needed to go to different accounts
(vehicle costs and telephone)
The split in the Cashbook is fine. Leave as is.
Why is there an OD fee of $10?
The bank account went into overdraft. Rose does not have an arranged overdraft facility with the bank, so they charged her $10.
Enter it into the Cashbook.
Why is $90 to glass cleaners not on the Bank Statement?
Cash was used to pay for this. Rose checked the Petty Cash box but it was not taken from there. She remembers using her own cash to pay.
Keep receipt and give to Accountant to enter into the bookkeeping system using a journal.
Why has the bank done a deposit correction of $50.
Rose checks the original deposit paperwork and calculations and sees that her assistant Alice did not add up the receipts correctly. The bank is correct to make this adjustment.
Include the adjustment in the Cashbook.
Why is Ch 0004 not on Bank Statement?
Rose checks the check/cheque book and she looks at her bills. She knows she posted the check to the sign writers and so they probably did not get it deposited before the month end.
This will be adjusted using the Bank Reconciliation Worksheet.
Why are the travel costs of $210 not on the Bank Statement?
The Cashbook reference is ‘Bank Card’. Rose remembers that she used the business Visa Card, not the bank card. However, she is still waiting for the Visa card statement which the bank will only send out in the middle of May.
‘Remove’ this transaction from the bank account Cashbook and start a separate Cashbook page for the Visa card transactions.
Why are none of the bank fees not in the Cashbook?
Rose wasn’t aware of them until she got the bank statement, although if she had checked her bank account online more closely she would have seen them.
Enter them into the Cashbook.
What is the $110 AMB Loans?
Rose checks her loan paperwork and sees that this is the regular monthly repayment. It is for $90 principal and $20 interest.
Enter to the Cashbook.
$200 withdrawal must be split to two Accounts
Rose only discovered this after checking the deposit to the Petty Cash Log sheet against the entry in the Cash Book.
Show that the Cash Box amount was $80, and the Cash Machine amount was $120.
Here is the list of Rose with her answers
Bank Reconciliation Exercises and Answers - Solutions/Answers to Questions