Respuesta :
Answer:
a.After preparing a bank reconciliation, no journal entries need to be made for outstanding checks or deposits in transit.
Explanation:
The bank reconciliation statement aims to reconcile the balance per bank statement with the balance per the cash book. There may be transactions that have been recorded in the books that are yet to be recognized by the bank. A good example of such is the deposit in transit. This would have been debited in the books but is yet to be recognized by the bank hence the books balance will be more.
This however does not invalidate the fact that the company has the cash and as such, there is no adjustment required in the books for such transactions.
The same applies to the outstanding checks which would have been deducted from the cash balance per the books but is yet to be presented at the bank.
This does not negate the fact that the liability for which the checks were issued has been settled hence, no adjustments are required in the books.
Answer:
The correct answer is letter "B": If a company's records show a different cash balance from that shown on the company's bank statement, either the company or the bank has made an error.
Explanation:
A bank reconciliation is a match between a company's bank balances in its accounting books and the information of the company in its bank statement. Adjustments are typically registered using journal entries when checks and deposits are in transit but must be recorded in the firm's books.
In front of discrepancies between the balance of the company's book and the bank statement, there must be an error whether from the bank or the firm.
