Bank Statement Reconciliation
A Grade 11 math worksheet focused on understanding and reconciling bank statements, including identifying discrepancies and adjusting balances.
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Bank Statement Reconciliation
Name:
Date:
Score:
Read each question carefully and provide accurate answers. Show all your work for calculations.
1. Which of the following items would require an adjustment to the bank's balance during reconciliation?
Outstanding checks
Deposits in transit
Bank service charges
All of the above
2. A check written by the company for $150 was recorded in the company's cash records as $510. How will this error affect the bank reconciliation?
The bank balance will be overstated by $360.
The book balance will be understated by $360.
The book balance will be overstated by $360.
No adjustment is needed; it's a bank error.
3. The primary purpose of a bank reconciliation is to explain the differences between the cash balance on the bank statement and the cash balance in the company's .
4. A deposit made by a company but not yet recorded by the bank is known as a .
5. Bank service charges increase the balance per bank statement.
True
False
6. Outstanding checks are checks written by the company that have not yet been cashed by the payee and cleared by the bank.
True
False
7. Explain two common reasons why a bank's cash balance might differ from a company's cash balance at a given point in time.
8. Describe the impact of an NSF (Non-Sufficient Funds) check on both the bank balance and the book balance during reconciliation.
9. Prepare a bank reconciliation for the month of October for XYZ Company using the following information:
Bank statement balance: $8,500 Company's cash account balance: $7,200 Deposits in transit: $1,200 Outstanding checks: $500 Bank service charge: $20 Interest earned on checking account: $10