Question

(C) It would not affect net profit (D) Both gross and net profits would be understated. PLEASE TURN OVER 8 A cheque paid by you, but not yet passed through the banking system, is (A) A standing order (B) A dishonoured cheque (C) A credit transfer (D) An unpresented cheque. 9 A Bank Reconciliation Statement is a statement (A) Sent by the bank when the account is overdrawn (B) Drawn up by us to verify our cash book balance with the bank statement balance (C) Drawn up by the bank to verify the cash book (D) Sent by the bank when we have made an error. 10 Which of the following are not true? A Bank Reconciliation Statement is (i) Part of the double entry system (ii) Not part of the double entry system (iii) Sent by the firm to the bank (iv) Posted to the ledger accounts. (A) (i), (iii) and (iv) (B) (i) and (ii) (C) ), (ii) and (iv) (D) (ii), (iii) and (iv). (20 Marks)

Answer 1

Answer to Question 8: An Unpresented Cheque is a check Paid by us, but not yet passed through the banking system. So, Option D is Correct Answer. Answer to Question 9: A Bank Reconciliation Statement is a statement Drawn up by us to verify our cash book balance with the Bank statement balance. So, Option B is Correct Answer. Answer to Question 10: Bank Reconciliation statement is not part of double entry system. Bank Reconciliation Statement is prepared by the staff of the account holder or account holder to verify balances of Cash book and Bank statement. It is not sent by the Bank. The items in Bank Reconciliation statement is not posted to ledger accounts. So, Option A is Correct Answer.