Mr. Ali has started Car Repair Service center in Ruwi and maintain Cash Book to record his
Question:
Mr. Ali has started Car Repair Service center in Ruwi and maintain Cash Book to record his Receipts and Payments and also opened Business Bank Account with Bank Sohar and does business transactions through bank. At the end of the month Cash Book Balance was RO 52,180 but this balance did not agree with the balance as shown by the Bank Book maintained by the Banker. In order to know why the balances are not equal he prepared Bank Reconciliation Statement and identified that a cheque of RO 1,020 from Khalid was deposited but it was charged as NSF. Banker has collected dividend of RO 1,890. A cheque for the amount of RO 570 issued to the creditor was misreported in the credit side of Cash Book as 470. Banker has recorded service charges RO 2,575 and Interest Income RO 3,000. The cheque issued by Mr. Ali RO 2,000 have not yet cleared by the bank and a deposited cheque of RO 5,000 did not appear in the bank statement. Based on the information provided you are required to answer the following Multiple Choice Questions.
Question 16
The Cash Book balance of RO 52,180, with out recording the service charges,Deposit in transit, Outstanding cheques. What will be the balance as per Bank Statement?
a. None of the options given
b. RO 46,605
c. RO 57,755
d. RO 47,755
Question 17
Identify the total amount which is added to the Cash Book Balance when Bank Reconciliation Statement is prepared by Mr.Ali?
a. RO 6,890
b. RO 9,890
c. RO 6,020
d. None of the options given
Question 18
Which of the Following record shows Mr.Ali how much cash his business believes that it has in the bank
a. Cash Book
b. Bank Reconciliation Statement
c. Bank Statement
d. Petty Cash Book
Question 19
When the cash book balance is given which of the following is Added from it to give the reconciled cash book balance?
a. When the Cheque is issued by Mr.Ali
b. When the deposited cheque is charged as NSF
c. When Bank records its service charges
d. When the deposited cheque is in transit
Question 20
When the cash book balance is given which of the following is deducted from it to give the reconciled cash book balance?
a. When Cheque issued but not cleared by the banker.
b. When Bank charges are debited by the bank in your bank statement
c. When outside parties directly pay money into your bank account without handing over cheques to you
d. When Bank credits interest to the bank balance in your account
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess