out * EXERCISES Answer the following questions. 1 The following items will result in a difference between the balances in the bank statement and the cash book, except A Interest charges B Standing order C Dishonoured cheque D Outstanding cheque 2 The following are the reasons for dissimilarity between balances in the bank statement and the cash book, except A Direct debit B Credit transfer C Cheque cleared D Dishonoured cheque 3 Uncredited cheques are A cheques issued by a business but not yet cashed out by creditors. B cheques that are already deposited into a business's bank account but not yet recorded in the bank statement. C bank charges on the services provided by the bank. D instructions given by a business to make regular payments on its behalf to its creditors. 4 Direct debit means A instructions by the business to the bank to pay a fixed regular amount of money at stated dates to persons, businesses or companies. B instructions to the bank to release amounts of money requested by creditors from time to time. Cthe direct transfer of money from the business's bank account into its creditors' bank account. D the direct transfer of money into the business's bank account by its debtors. Fundamentals of Financial Accounting 8 A cheque drawn by the business for 1976 for payment of a liability was recorded in the journal as RM906. This item would be india 20x8 was credited into the bank on 31 January 5 A bank reconciliation statement is a statement that is A drawn up by the business to verify the cash book balance with the bank statement balance. in the bank reconciliation as a/an B drawn up by the bank to verify the cash A deduction by the bank B addition by the bank book. C deduction by the business sent by the bank when the business has D addition by the business made an error. D sent by the bank when the account is 9 A cheque received from a debtor on 29 March overdrawn. 20x7. However, on 7 April 20x8, the back 6 In preparing a bank reconciliation statement, returned the cheque. This is known as which of the following items will not be A unpresented cheque included in updating the cash book? Buncredited lodgement A Interest charges Cdishonoured cheque B Unpresented cheque Dunrecorded deposit C Bank charges 10 The bank reconciliation statement shows a D Standing order debit balance of RM2,470 as per the cash book, 7 To deposit money in your business's bank unpresented cheques amounting to RM858, account, you should use and a credit balance of RM1,198 as per the bank a cheque book statement. What is the amount of the deposits B a bank statement not yet credited? a deposit slip A RM2,810 C RM4,526 Da withdrawal slip B RM2,130 D RM414 PROBLEM QUESTIONS