Bank reconciliation statement questions with answers

A new cash book and bank statement every time. Tick the items in both, update the cash book, prepare the statement, and check every figure.

Course
Level

Start from

Set

How answers are marked
  • Amounts must be exact, to the cent or penny (whole rupees for CBSE). Cells that stay empty are left empty.
  • Tick an item only when it is in both records with the same amount. A cheque entered twice in the cash book gets one tick.
  • Overdrawn balances and proof of cash deductions go in brackets, like (1,250.00), or with a minus sign.
  • In step 2, choose each reconciling item from the lines of the records, then fill in its amounts. There are more item lines than any problem needs.
  • Check marks only the boxes you ticked, chose or filled in, and counts the answers still to give. A total that follows from your own wrong entries is pointed out as such.

    How each month is made

    Every problem is an invented month at a small business. Cheques written in the last few days have not reached the bank, the last deposit is not yet credited, and the bank has charges, interest, direct debits, standing orders and credit transfers the cash book has not seen. Higher levels carry items over from last month's reconciliation, add an error in the cash book, a cheque the bank charged in error and a dishonoured cheque. The key's reconciliation always ends exactly at the updated cash book balance.

    An example: set BANK26

    Pebble & Pine Gifts has $2,291.70 in its cash book at 28 February. The bank statement adds a credit transfer of $539.60 and interest of $15.00, and takes a standing order of $655.00, a direct debit of $646.05 and charges of $23.75, so the updated cash book shows $1,521.50. The statement says $2,134.65. Cheque 457021 was on January's list and is still not presented, so $160.30 comes off again, with cheque 457026 for $1,369.50, and the cash sales of $916.65 paid in on 28 February are added: $2,134.65 − $160.30 − $1,369.50 + $916.65 = $1,521.50. Open set BANK26

    What each course expects

    IGCSE and O Level (0452 topic 3.3) update the cash book, then reconcile with bank errors, uncredited deposits and unpresented cheques. A Level 9706 writes the statement with outstanding bankings and brackets for an overdraft. AAT Level 2 reconciles the closing bank statement balance with outstanding lodgements and unpresented cheques. CBSE class 11 (NCERT chapter 5) prepares the statement from the cash book or the passbook in two columns, without adjusting the cash book. The US course reconciles both sides to an adjusted balance, and its top level is the four-column proof of cash.

    Questions

    What is a bank reconciliation statement?

    A short statement that explains why the balance on the bank statement differs from the bank balance in the cash book on the same date. It starts from one balance, adds and takes away the items that cause the difference, and ends at the other balance.

    Why do the cash book and the bank statement not agree?

    Timing and errors. Cheques written near the month end have not reached the bank, deposits made on the last day are not yet credited, and the bank has items the business has not recorded yet, such as bank charges, interest, direct debits and credit transfers.

    Which items update the cash book and which go in the reconciliation?

    Items only the bank knows about (charges, interest, direct debits, standing orders, credit transfers, dividends, dishonoured cheques) and the business's own errors go in the cash book. Unpresented cheques, uncredited deposits and bank errors go in the reconciliation statement.

    What are unpresented cheques and uncredited deposits?

    Unpresented cheques are cheques the business has written and recorded that the bank has not paid yet. Uncredited deposits (outstanding lodgements, deposits in transit) are amounts paid in and recorded that the bank has not yet added. Both clear next month, so they are timing differences.

    How is an overdraft shown in a bank reconciliation statement?

    As a negative figure. A-level mark schemes write it in brackets, such as (1,250.00). In the CBSE two-column statement an overdraft starts in the (−) column. On a bank statement it is marked Dr, because the business owes the bank.

    Can I start from the cash book balance instead?

    Yes. Starting from the cash book, unpresented cheques are added and uncredited deposits taken away, the reverse of starting from the bank statement. CBSE class 11 practises both, and the starting point here can be switched.

    What is a proof of cash?

    A four-column reconciliation used in auditing and on the CPA exam. It reconciles the beginning balance, the month's receipts, the month's disbursements and the ending balance at once, so last month's and this month's outstanding items both appear.

    Sources, checked October 27, 2026: Cambridge IGCSE Accounting 0452 syllabus for 2026 (PDF), topic 3.3; Cambridge AS and A Level Accounting 9706 syllabus 2026 to 2028 (PDF), 1.4.3 and 9706 specimen paper 2 mark scheme (PDF), question 2; AAT Level 2 Certificate in Accounting specification (PDF), Principles of Bookkeeping Controls 2.2 and 2.3; NCERT Accountancy Class 11 Part I, chapter 5 (PDF); Lumen Learning, Financial Accounting: Bank Reconciliation.