Bank Reconciliation is one of 9 topics in the Grade 10 Accounting CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. The Bank Statement is a record kept by:
The bank itself, showing every transaction it has processed
The business only, never the bank
SARS, showing tax paid
The business's debtors
Answer: The bank itself, showing every transaction it has processed — The Bank Statement is issued by the bank and reflects transactions from the bank's own point of view, separate from the business's own Bank account records.
Easy
2. The main reason the Bank account (in the business's books) and the Bank Statement often show different balances on a given day is:
Timing differences, where a transaction is recorded by one party before the other
The business and the bank use different currencies
The bank charges VAT on every transaction
The business is legally required to keep two different balances
Answer: Timing differences, where a transaction is recorded by one party before the other — The two records track the same underlying account, but timing differences (deposits or payments recorded by one side before the other processes them) commonly cause the balances to differ on any given day.
Medium
3. A business deposits cash on the last day of the month, after the bank's daily cut-off time. This deposit will appear on the Bank Statement:
Only in the following period, since the bank has not yet processed it
Immediately, on the same day
Never, since late deposits are rejected
Only if the business phones the bank
Answer: Only in the following period, since the bank has not yet processed it — A late deposit becomes an outstanding deposit: recorded by the business already, but not yet reflected by the bank until it is processed, typically in the following period.
