Question

True or False

1) Journal entries must be made to record the reconciling items on the bank side of the reconciliation.

2) An outstanding check is a check issued by the company and recorded on its books, but not yet paid by its bank.

3) On a bank reconciliation, deposits in transit are subtracted on the book side of the reconciliation.

4) If the bank reconciliation includes a bank service charge, a journal entry is required which debits Cash and credits Miscellaneous expense.

5) If the bank reconciliation includes a deposit in transit, a journal entry is required which includes a debit to cash.

6) If the bank reconciliation includes outstanding checks, no journal entries are required.

7) If the bank reconciliation includes a book error, no journal entries are required.

8) Journal entries that are necessitated by reconciling items on the book side of the reconciliation all include either a debit to Cash or a credit to Cash.

9) If the bank reconciliation includes interest revenue, a journal entry is required which debits Cash and credits Interest revenue.

10) In a bank reconciliation, a book error will be shown on the bank side of the reconciliation.

Answer 1

Answer -

No.	Particulars	True / False
1)	Journal entries must be made to record the reconciling items on the bank side of the reconciliation.	False
2)	An outstanding check is a check issued by the company and recorded on its books, but not yet paid by its bank.	True
3)	On a bank reconciliation, deposits in transit are subtracted on the book side of the reconciliation.	False
4)	If the bank reconciliation includes a bank service charge, a journal entry is required which debits Cash and credits Miscellaneous expense.	False
5)	If the bank reconciliation includes a deposit in transit, a journal entry is required which includes a debit to cash.	False
6)	If the bank reconciliation includes outstanding checks, no journal entries are required.	True​​​​​​​
7)	If the bank reconciliation includes a book error, no journal entries are required.	False
8)	Journal entries that are necessitated by reconciling items on the book side of the reconciliation all include either a debit to Cash or a credit to Cash.	True​​​​​​​
9)	If the bank reconciliation includes interest revenue, a journal entry is required which debits Cash and credits Interest revenue.	True​​​​​​​
10)	In a bank reconciliation, a book error will be shown on the bank side of the reconciliation.	False