3.3.5 - Step 5: Prepare the Reconciliation Statement
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Practice Questions
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What does the reconciliation statement aim to achieve?
💡 Hint: Think about the purpose of reconciling financial records.
Name one component that is added to the cash book balance during reconciliation.
💡 Hint: Consider what amounts might not be recorded in the cash book.
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Interactive Quizzes
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What is the purpose of a Bank Reconciliation Statement?
💡 Hint: Think about why businesses would check their records against the bank.
True or False: Outstanding checks should be added to the cash book balance.
💡 Hint: Consider what outstanding checks imply.
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Challenge Problems
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A company notes a cash book balance of ₹7,500 and a bank statement balance of ₹9,200. Adjustments include ₹2,000 in deposits in transit and ₹1,500 in outstanding checks, plus ₹400 in unrecorded bank charges. What is the final adjusted balance?
💡 Hint: Break down the adjustments step by step.
If a company consistently finds discrepancies between its cash records and bank statements, list three actions it could implement to avoid future discrepancies.
💡 Hint: Think of preventive measures for accuracy.
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