BANK RECONCILIATION REVIEW QUESTIONS

Question One:
The following cash book extract (bank columns) of Pazi Ltd for June, 20X5
Dr. CASH BOOK Cr.
Date Particulars Amount Date Particulrs Amount
June 1 Balance b/d 12,000,000 June 5 Sam Cheque No.1190 3,000,000
“ 5 Cash 5,000,000 “ 9 Clesta “ “ 1191 5,000,000
“ 7 Halima 2,400,000 “ 10 Mambo “ “ 1192 1,500,000
“ 12 Cash 3,000,000 “ 14 Cash “ “ 1193 3,400,000
“ 15 Shirima 2,000,000 “ 19 Sugu Cheque No. 1194 2,200,000
“ 17 Halima 1,400,000 “ 22 Clesta “ “ 1195 4,100,000
“ 20 Cash 8,000,000 “ 25 Sambo “ “ 1196 3,000,000
“ 23 Nguma 2,100,000 “ 27 Cash “ “ 1197 7,600,000
“ 25 Cash 1,900,000 “ 31 Balance c/d 14,200,000
“ 27 Salome 3,500.000
“ 30 Karima 2,750,000
44,000,000 44,000,000

BANK STATEMENTFOR THE MONT OF JUNE 20X5

Date Particulars Debit Credit Balance
May 1 Balance b/d 12,000,000
“ 5 Cash 5,000,000 17,000,000
“ 7 Sam Cheque No.1190 3,000,000 14,000,000
“ 9 Cheque (Halima) 2,400,000 16,400,000
“ 12 Cash 3,000,000 19,400,000
“ 14 Cash Cheque No.1193 3,400,000 16,000,000
“ 15 Mambo Cheque No.1192 1,500,000 14,500,000
“ 16 Cheque Morogoro 2,500,000 17,000,000
“ 16 Charges 40,000 16,960,000
“ 18 Shirima Cheque 2,000,000 18,960,000
“ 20 Cash 8,000,000 26,960,000
“ 21 Insurance premium 2,500,000 24,460,000
“ 22 Sugu Cheque No.1194 2,200,000 22,260,000
“ 25 Cash 1,900,000 20,360,000
“ 26 Sambo Cheque No.1196 3,000,000 17,360,000
“ 27 Cash 7,600,000 9,760,000
“ 30 Salome Cheque 3,500,000 6,260,000
“ 31 Charges 60,000 6,200,000
You are required to reconcile the cash book and bank statement of Pazi Ltd. for June, 20X5.

Question Two:
From the following particulars prepare a statement showing how the difference between the cash book
and the bank statement balance is reconciled:
Balance as per bank statement (Cr.) TZS. 3,600,000
Balance as per cash book 4,800,000
Unpresented cheques 8,640,000
Uncredited cheques 1,560,000

In addition you ascertain the following:

(a) The cheque for TZS. 1,200,000 paid to Shambalai has been entered in error in the cash
column of the cash book.
(b) The debit side of the Cash Book (Bank column) has been undercasted by TZS. 3,000,000.
(c) Bank charges of TZS. 480,000 have not been entered in the cash book.
Question Three:
On 31st December 20X5 the bank column of Jamaldin cash book showed a debit balance of TZS.
15,000,000 while Bank statement showed a credit balance of TZS. 6,800,000. On checking the cash
book with the bank statement the following transactions had been discovered.
(i.) Dividends of TZS.2,000,000 had been paid directly to the bank.
(ii.) A credit transfer from one of customers Subira of TZS. 2,500,000 had been collected
by the bank.
(iii.) Bank charges for the month were TZS. 200,000
(iv.) A direct debit of TZS.1,700,000 for association insurance premium had been paid by the bank.
(v.) A standing order of TZS.2,000,000 for loan repayment had been paid by the bank.
(vi.) Jamaldin’s deposit account balance TZS. 3,400,000 was transferred into his bank current account.
(vii.)Unpresented cheques amounted to TZS.1,800,000 and
(viii.)Uncredited cheques totaled TZS. 800,000
Required
(a) Update Jamaldin cash book
(b) Prepare bank Reconciliation Statement.

Question Four:
From the following particulars ascertain the Bank balance as per bank statement of Ramia as at 28th
February 20X6.
(a) Credit Balance as per cash book on 28th February 2016 was TZS. 15,000,000
(b) Interest charged by the Bank up to 28th February, TZS. 500,000 is not recorded in the cash
book.
(c) Bank charges charged by the Bank TZS 125,000 were recorded in the Bank statement only.
(d) Out of the cheques of TZS. 25,000,000 paid into Bank, cheques of TZS, 18,750,000 were
cleared and credited by the Bank.
(e) Two cheques of TZS. 7,500,000 and 15,000,000 were issued but out of them only one cheque
of TZS. 7,500,000 was presented for payment up to 28th February.
(f) Dividends on shares TZS. 4,500,000 were collected by the bank directly for which Ramia did
not have any information.

Question Five:
On 31st January, 20X6 Marijani’s cash book showed a Bank overdraft of TZS. 98,000,000. On
comparison he finds the following:
(a) Out of the total cheques of TZS. 8,900,000 issued on 27th January, one cheque of TZS.
7,400,000 was presented for payment on 4th February and other cheques of TZS. 1,500,000,
handled over to the customer was returned by him and in lieu of that a new cheque of the same
amount was issued to him on 1st February. No entry for the return was made.
(b) Out of total cash and cheques of TZS. 6,800,000 deposited in the cahs book on 24th January,
one cheque of TZS. 2,600,000 was cleared on 1st febvruary and the other cheque of TZS.
500,000 was returned dishonoured by the bank on 2nd February.
(c) Bank charges of TZS. 35,000 and bank interest of TZS. 2,860,000 appearing in the bank
statement are not yet recorded in the cash book.
(d) Cheque deposited in his account No. 2 TZS. 1,550,000 wrongly credited to this account by the
bank.
(e) A cheque of TZS. 800,000, drawn in his account, was wrongly debited in account No. 2 by the
bank.
(f) A cheque of TZS. 160,000, issued for this account by mistake recorded in the cash book in the
bank column for No. 2 account, was presented for payment on February 2.
Prepare bank reconciliation statement as on 31st January 20X6.
Question Six:
The following is the summary of the cash book as presented to you for the month of December 20X5.
TZS. TZS.
Receipts 14,690,000 Balance, brought forward 7,610,000
Balance, carried forward 5,540,000 Payments 12,620,000
20,230,000 20,230,000
All receipts are banked and all payments are made by cheques. On investigating you discover:
1. Bank charges of TZS. 1,360,000 entered on the bank statement had not been entered in the
cash book.
2. Cheques drawn amounting to TZS. 2,670,000 had not been presented to the bank for payment.
3. Cheques received totaling TZS. 7,620,000 had been entered in the cash book and paid into the
bank, but had not been credited by the bank until January, 20X6.
4. A cheque for TZS. 220,000 had been entered as receipt in the cash book instead of as
payment.
5. A cheque for TZS. 230,000 had been debited by the bank in error.
6. A cheque received for TZS. 800,000 had been returned by the bank and marked as “No funds
available” No adjustment had been made in the cash book.
7. All dividends received are credited directly to the bank account. During December amounts
totaling TZS 620,000 were credited by the bank and no entries made in the cash book.
8. A cheque drawn for TZS. 60,000 had been incorrectly entered in the cash book as TZS.
660,000.
9. The balance brought forward should have been TZS. 7,110,000.
10. The bank statement as on 31st December 20X5, showed an overdraft of TZS. 11,620,000
You are required to:
(a) Show the adjustments required in the cash book, and
(b) Prepare bank reconciliation statement as on 31st December, 20X5.

Question Seven
You are given the following information, prepare Bank Reconciliation Statement as on November
20X5.

Dr Cash Book Cr.

20X5 TZS. 20X5 TZS.
Nov. 1 Balance 7,600,000 Nov. 3 Cash Drawings 4,000,000
‘’ 7 Wahabi 8,400,000 “ 11 Fatuma 23,800,000
‘’ 15 Duni 20,000,000 “ 15 Cheque book 200,000
“ 19 Faisar 26,000,000 “ 24 Chande 10,400,000
“ 29 Muheza 6,000,000 “ 26 Hamza 7,600,000
“ 31 Gloria 3,600,000 “ 29 Gunia 2,200,000
“ 29 Commission 200,000
“ 29 Wages and 8,000,000
Salaries
“ 31 Balance 15,400,000

BANK STATEMENT FOR THE MONTH OF DECEMBER 2015

Date Particulars Debit Credit Balance
20X5 TZS. TZS. TZS.
Dec.1 Balance 18,400,000
‘’ 2 Chande 10,400,000
“ 3 Muheza 6,000,000
“ 4 Stella 12,300,000
“ 4 Selemani 800,000
“ 5 Gloria 3,600,000
“ 5 Muheza (cheque 6,000,000
dishonoured
“ 6 Daira 4,500,000
“ 8 Bakari 1,500,000
“ 9 Doto 7,500,000
“ 9 Gunia 2,200,000
Question Eight
On 31st December 20X2 the bank column of C.Tessa’s cash book showed a debit balance of TZS.
660,000 while Bank statement showed a credit balance of TZS. 2,950,000. On checking the cash book
with the bank statement, the following transactions had been discovered.
a) Dividends of TZS. 200,000 had been paid directly to the bank.
b) A credit transfer from one of the customers S. Ngolongo of TZS.260,000 had been
collected by the bank.
c) Bank charges TZS.300,000
d) A direct debit of TZS. 70,000 for association membership subscription had been paid by
the bank.
e) A standing order of TZS. 200,000 for loan repayment had been paid by the bank.
f) C.Tessa’s deposit account balance TZS.1,400,000 was transferred into his bank current
account.
g) Unpresented cheques amounted to TZS.1,800,000 and
h) Uncredited cheques totaled TZS.800,000

Required
(a) Update C. Tessa’s cash book,
(b) Prepare bank Reconciliation Statement.

Question Nine:
From the following particulars update the cash book and prepare a statement showing how the
difference between the cash book and the bank statement is reconciled:
Balance as per bank statement (Cr.) TZS 720,000
Balance as per Cash Book (Dr.) 960,000
Unpresented cheques 1,728,000
Uncredited cheques 312,000

In addition you ascertain in the following:

(a) A cheque for TZS. 240,000 paid to Shamsa has been entered in the Cash account as TZS. 240,000
in error.
(b) The debit side of the cash book has been undercasted by TZS. 600,000
(c) Bank charges of TZS. 96,000 have not been entered in the cash book.

Question Ten:
From the following particulars ascertain the balance as per bank statement of Ramatuli as at 28th
February 20X9:
(a) Credit balance as per cash book on 28th February 20X9 was TZS. 3,000,000,
(b) Interest charged by the bank up to 28th February, TZS. 100,000 was recorded in the bank
statement,
(c) Bank charges made by the bank up to 28th February TZS. 25,000 were also recorded only in
the bank statement.
(d) Out of the cheques of TZS 5,000,000 paid into the bank, cheques of TZS. 3,750,000 were
cleared and credited by the bankers.
(e) Two cheques of TZS. 1,500,000 and 3,000,000 were issued but out of them only one cheque
of TZS. 1,500,000 was presented for payments for payments up to 28th February.
(f) Dividends on shares TZS. 900,000 were collected by the bankers directly about which
Ramatuli did not have any information.
Question Eleven:
On 31st January, 20X9 Malamla cash book showed a bank overdraft of TZS. 98,700,000. On
comparison with bank statement he found the following:
(a) Out of the total cheques of TZS. 8,900,000 issued on 27th January, one cheque of TZS
7,400,000 was presented for payment on 4th February and the other cheque of TZS. 1,500,000,
handed over to the customer, was returned by him on 1st February. No entry for return was
made.
(b) Out of the total cash and cheques of TZS. 6,800,000 deposited in the bank on 24th January,
one cheque of TZS. 2,600,000 was cleared on 1st February and the other cheque of TZS
500,000 was returned dishonored by the bankers on 2nd February.
(c) Bank charges TZS. 35,000 and bank interest TZS. 2,860,000 which appear in the bank
statement are not yet recorded in the cash book.
(d) Cheque deposited in his account No. 2 TZS. 1,550,000 wrongly credited to this account by the
bank.
(e) A cheque of TZS. 800,000, drawn on this account, was wrongly debited in account No. 2 by
the bank.
(f) A cheque of TZS. 160,000, issued for this account, by mistake recorded in the cash book for
account No. 2, was presented for payment on February 2.
Prepare bank reconciliation statement as at 31st January 20X9.

Question Twelve:
From the following particulars, prepare bank reconciliation statement as at 31st December, 20X8.
(i) A cheque of TZS. 200,000, which was received from a customer was entered in the cash book
in December, but the same was paid into the bank in January next.
(ii) The trader had issued cheques in December amounting to TZS. 16,000,000, of which he finds
that a cheque of TZS. 7,000,000 was cashed in December, a cheque of TZS. 3,500,000 was
cashed on 2nd January and the rest were not at all presented.
(iii) The bankers gave a wrong credit in account No. 1 in respect of a cheque of TZS. 4,500,000
which was deposited in account No. 2.
(iv) As per the standing orders, the bankers paid the following amounts out of account No. 2:
Insurance Premium TZS.130,000
Calls on shares 540,000
(v) They had received the following amounts for account No. 2:
Dividend in shares TZS.320,000
Insurance Claim 850,000
(vi) Bank charges TZS. 25,000 were not recorded in the cash book.
Overdraft as per cash book of account No. 2 was TZS. 9,800,000 on 31st December.

Question Thriteen:
Mr. Yohana is having two accounts (A & B) with the NB Bank. On 31st December 20X8, his ledger
shows a balance of TZS. 5,000,000 in account A and overdraft of TZS. 2,250,000 in account B. On
verifying the ledger entries with the respective bank statements, the following mistakes were noticed:
(i) A deposit of TZS. 1,500,000 made into A on 20th December 20X8 has been entered in the
ledger in account B.
(ii) A withdraw of TZS. 500,000 from account A on 2nd November 20X8 has been entered in the
ledger in account B.
(iii) Two cheques of TZS. 500,000 and TZS. 750,000 deposited in A account on 1st December
20X8 ( and entered in the books in B account) have been dishonored by the bankers. The
entries for the dishonored of these cheques have been entered in the books in B account.
(iv) In the accounts A and B, Mr Yohana has issued on 29th December 20X8 cheques for TZS.
10,000,000 and TZS. 1,000,000 respectively and these were not been cashed till 31st
December 20X8.
(v) Incidental charges of TZS. 10,000 and TZS. 25,000 charged in the accounts A and B
respectively have not been entered in the books.
(vi) The bank has credited an interest of TZS 50,000 for account A and has charged interest of
TZS. 275,000 for account B which were not recorded in the books.
(vii) The deposits of TZS. 5,000,000 and TZS. 3,500,000 made into the accounts A and B both on
30th December 20X8 were not been given credit to by the bank till 31st December 20X8.
Draw the bank reconciliation statements for the above two accounts.
Question Fourteen:
The following is the summary of a cash book as presented to you for the month of December, 20X8.
Date Particulars Amount Date Particulars Amount
Receipts 1,469,000 Balance b/d 761,000
Balance c/d 554,000 Payments 1,262,000
2,023,000 2,023,000

All receipts are banked and payments made by cheque. On investigation you discover:
(i) Bank charges of TZS. 136,000 entered on the bank statement had not been entered in
cash book.
(ii) Cheques drawn amounting to TZS. 267,000 had not been presented to the bank for
payment.
(iii) Cheques received totaling TZS. 762,000 had been entered in the cash book and paid
into the bank, but had not been credited by the bank until January, 20X9.
(iv) A cheque for TZS. 22,000 had been entered as a receipt in the cash book instead of as
a payment.
(v) A cheque for TZS. 25,000 had been debited by the bank in error.
(vi) A cheque received for TZS. 80,000 had been returned by the bank and marked “No
funds available” No adjustment had been made in the cash book.
(vii) All dividends receivable are credited directly to the bank account. During December,
amounts totaling TZS. 62,000 were credited by the bank and entries made in the cash
book.
(viii) A cheque drawn for TZS. 6,000 had been incorrectly entered in the cash book as TZS.
66,000.
(ix) The balance brought forward should have been TZS. 711,000.
(x) The bank statement as on 31st December, 20X8, showed an overdraft of TZS.
1,162,000.
You are required to:
(a) Show the adjustments required in the cash book
(b) Prepare a bank reconciliation statement as on 31st December, 20X8.

Question Fifteen:
Nyahekwa Co. Ltd. received her bank statement showing the favorable balance of TZS 7,392,000 for
the period ended 30th June. 20X7, this did not agree with the balance shown in the cash book. An
examination of the cash book and bank statement disclosed the following :

(i) A deposit of TZS. 492,000 paid on 29th June, 20X7, had not been credited by the bank until 1st
July 20X7.
(ii) Bank charges amounting to TZS.17,000 had not been entered in the cash book.
(iii) A debit of TZS.42, 000 appeared in the bank statement for an unpaid cheque, which had been
returned marked ‘’out of date’’. The cheque had been re-dated by the customer of Nyahekwa
Co. LTD. and paid into the bank again on 3rd July, 20X7.
(iv) A standing order for payment of an annual subscription amounting to TZS. 10, 000 had not
been entered in the cash book.
(v) On 25th June, the managing director gave the cashier a cheque for TZS.100, 000 to pay into
his personal account at the bank. The cashier paid it into the company’s account by mistake.
(vi) On 27th June two customers of Nyahekwa Co. Ltd. paid directly to the banks account
TZS.499, 000 and TZS.157, 000 respectively in payment for goods supplied. The advices
were not received by the company until 1st July and were entered in the cash book under that
date.
(vii) On 30th March, 20X7, the company had entered into a hire purchase agreement to pay by
banker’s order a sum of TZS. 26,000 on the 10th day of each month, commencing in April. No
entry has been made in the cash book.
(viii) TZS. 364,000 paid into the bank had been entered twice in the cash book.
(ix) Cheques issued amounting to TZS. 4,672,000 had not been presented to the bank for payment
until after 30th June 20X7.
 (x) A customer of the company, who received a cash discount of 21/2% on his account of TZS.
200,000, paid the company a cheque on 10th June. The cashier, by mistake, entered the gross
amount in the cash book.

You are required:

(a) to show the necessary adjustments in the cash book of Nyahekwa Co. Ltd., bringing
down the correct balance on 30th June 20X7
(b) to prepare a bank reconciliation statement as on that date.

Question Sixteen:
You are given the following information:
Books of Hyera Bros.
Date Particulars Amount Date Particulars Amount
Dec. 1 Balance 760,000 Dec. 3 Drawings 400,000
Mwadawa 840,000 Fatu 2,380,000
7 11
Dina 2,000,000 Cheque book 20,000
15 15
Faruku 2,620,000 Chandu 1,040,000
19 24
Mahembe 600,000 Chatu 760,000
29 26
Gulu 360,000 Galanosi 220,000
31 29
Commission 20,000
29
Wages & Salaries 800,000
29
Balance 1,540,000
31
7,180,000 7,180,000

Bank Statement
Date Particulars Debit Credit Balance
Jan. 1 Balance b/d 1,840,000
2 Chandu 1,120,000 760,000
3 Mahambe 600,000 1,400,000
4 Stuli (direct credit) 1,230,000 2,630,000
4 Singa 80,000 2,550,000
5 Gulu 360,000 2,910,000
5 Mahembe Dishonored cheque 600,000 2,310,000
Dana 450,000 1,860,000
6
Babujii 150,000 1,710,000
8
Dadaa 750,000 2,460,000
9
Galata 220,000 2,240,000
9

Required:
Update the Cash Book and Prepare Bank Reconciliation Statement.