Practice - Reasons for Discrepancies in Bank Reconciliation
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Practice Questions
Test your understanding with targeted questions
What is a deposit in transit?
💡 Hint: Think of deposits made recently that aren't on the bank's side yet.
Define outstanding checks.
💡 Hint: Consider checks given out to suppliers that have not been cashed.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is a primary reason for discrepancies in bank reconciliation?
💡 Hint: Think about what affects cash availability in the bank.
True or False: Deposits in transit can create discrepancies in bank reconciliation.
💡 Hint: Recall the timing of deposit processing by banks.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A company has a cash book showing ₹10,000 and its bank statement shows ₹8,000. There are ₹3,000 in deposits that the bank hasn’t recorded and ₹2,000 in outstanding checks. What is the correct balance?
💡 Hint: Ensure you adjust for deposits and checks.
During reconciliation, you notice that a ₹500 bank charge was not recorded. If your cash book indicates ₹7,500 before this charge, what is the new balance after the adjustment?
💡 Hint: Keep track of all fees that might affect your balance.
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