A customer pays money directly into the business bank account, but the business has not yet recorded it in the cash book. What is the correct treatment?
Correct answer: B. Debit the bank column and credit the customer account
- A. Credit the bank column and debit the customer account
- B. Debit the bank column and credit the customer account
- C. Debit the bank column and credit the purchases account
- D. Credit the bank column and debit the sales account
Explanation
A direct deposit increases the bank balance and reduces the customer's receivable. The cash book bank column is debited, while the customer's account is credited.
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About Bank Reconciliation and Control Accounts
Bank reconciliation explains differences between the cash book and bank statement through unpresented cheques, outstanding deposits, bank charges, direct payments, credited amounts and recording errors. Control accounts summarise receivables and payables ledgers, and their balances are reconciled with individual accounts to locate discrepancies.
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Bank charges appear on the bank statement but have not been entered in the cash book. What entry is required in the cash book?
A cheque deposited by a business has been entered in the cash book but has not yet been credited by the bank. What is the effect?
A cheque issued by a business has not yet been presented to the bank for payment. How does this item usually affect the bank reconciliation?
What is the principal purpose of a control account in a general ledger?
Which item is normally recorded on the credit side of the sales ledger control account?
Which item is normally recorded on the debit side of the purchases ledger control account?