3.3.2 - Step 2: Add Unrecorded Transactions
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Practice Questions
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What are deposits in transit?
💡 Hint: Think about deposits that haven't shown up in your account yet.
Why is it important to add bank interest during reconciliation?
💡 Hint: Consider any additional money earned from the bank.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is a deposit in transit?
💡 Hint: Think about what happens after you deposit money.
True or False: Bank interest should be included in the cash book.
💡 Hint: Consider how banks reward your deposits.
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Challenge Problems
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A company checks its bank statement and finds that it shows a balance of $20,000. However, the cash book drafted previously shows $18,500. After reviewing, the following were found: deposits in transit of $1,500, outstanding checks of $1,000, and $250 in bank interest missing from the cash book. Calculate the adjusted cash book balance.
💡 Hint: Break down the adjustments into positive and negative adds.
Consider a scenario where a company received various checks totaling $3,000 that were not recorded yet by the bank, but mistakenly deducted $200 in bank fees. If the company's cash book shows $12,000, calculate the new cash book balance considering the transactions.
💡 Hint: Adjust for fees as negative and add deposits as positive.
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