Standing Order – NBC Institute

FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies the method of payment for regular fixed amounts through bank instructions.

Question

Florence Ajade pays her professional subscription through instructions to her bank to make annual regular payments of a fixed amount from her current account. When the subscription increases, she issues revised instructions to the bank to reflect the new amount.

Which of the following methods of payment is she using?
A. Internet banking transfer
B. Standing order
C. Payable order
D. Direct credit
E. Standing bill of payment

Answer

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Tags: Bank Instructions, Payment Methods, Standing Order
Level: Level 1

FA – May 2017 – L1 – SB – Q6a – Bank Reconciliation

Prepare an adjusted cash book and bank reconciliation statement for Payless Ltd.

Question

The Accountant of Payless Limited, on receiving the bank statement of the business for September 2016, noticed a difference between the bank account balance and the bank column of the company’s cash book. On investigation, the accountant found the following:

(i) The bank statement had been debited in error to the tune of N500,000. The error had been discovered by the bank and would be reversed the next working day.
(ii) Cheques amounting to N840,000 paid into the bank were uncleared and yet to be credited to the business bank account.
(iii) Some cheques amounting to N206,500 paid into the bank were dishonoured.
(iv) Standing order of N100,000 with the bank had been effected by the bank.
(v) Dividends for investments amounting to N45,000 had been received directly into the bank account.
(vi) Some of the business debtors had paid directly into Payless Limited’s bank account an amount of N2,485,000.
(vii) Cheques amounting to N520,000 issued to creditors were recorded in the cash book but were yet to be presented to the bank.
(viii) Bank charges were N1,050.
(ix) Interests received from the bank were N4,255.

The balance on the bank column of the cash book was N3,797,268, and the bank statement balance was N5,203,973.

You are required to:

i. Prepare the adjusted cash book. (6 Marks)
ii. Prepare the bank reconciliation statement. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjusted Cash Book, Bank Charges, Bank Reconciliation, Cash Book, Cheques, Standing Order
Level: Level 1

Topic: Bank reconciliations
Series: MAY 2016

FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies the method of payment for regular fixed amounts through bank instructions.

Question

Which of the following methods of payment is she using?
A. Internet banking transfer
B. Standing order
C. Payable order
D. Direct credit
E. Standing bill of payment

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank Instructions, Payment Methods, Standing Order
Level: Level 1

FA – May 2017 – L1 – SB – Q6a – Bank Reconciliation

Prepare an adjusted cash book and bank reconciliation statement for Payless Ltd.

Question

The balance on the bank column of the cash book was N3,797,268, and the bank statement balance was N5,203,973.

You are required to:

i. Prepare the adjusted cash book. (6 Marks)
ii. Prepare the bank reconciliation statement. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adjusted Cash Book, Bank Charges, Bank Reconciliation, Cash Book, Cheques, Standing Order
Level: Level 1

Topic: Bank reconciliations
Series: MAY 2016

Question Tag: Standing Order

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FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies the method of payment for regular fixed amounts through bank instructions.

FA – May 2017 – L1 – SB – Q6a – Bank Reconciliation

Prepare an adjusted cash book and bank reconciliation statement for Payless Ltd.

FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies the method of payment for regular fixed amounts through bank instructions.

FA – May 2017 – L1 – SB – Q6a – Bank Reconciliation

Prepare an adjusted cash book and bank reconciliation statement for Payless Ltd.

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FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies the method of payment for regular fixed amounts through bank instructions.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2017 – L1 – SB – Q6a – Bank Reconciliation

Prepare an adjusted cash book and bank reconciliation statement for Payless Ltd.

You're reporting an error for "FA – May 2017 – L1 – SB – Q6a – Bank Reconciliation"

FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies the method of payment for regular fixed amounts through bank instructions.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2017 – L1 – SB – Q6a – Bank Reconciliation

Prepare an adjusted cash book and bank reconciliation statement for Payless Ltd.

You're reporting an error for "FA – May 2017 – L1 – SB – Q6a – Bank Reconciliation"

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