Mila is a sole trader. On 1 April 2019, her bank account showed a debit balance of \2 800. The cash book showed a credit balance of 2 500 on the same date. (b) Make two necessary adjustments in the cash book to reflect the actual bank balance.

Mark scheme

Marking points from the official mark scheme. The mark or mark type is shown in brackets.

1. M1 for correct debit entry with description (1)
2. A1 for correct amount (1)
3. M1 for correct credit entry with description (1)
4. A1 for correct amount (1) Example adjustments: * Debit: Bank interest received, direct credit from customer, etc. * Credit: Bank charges, direct debit, standing order, dishonoured cheque, etc. No marks for specific amounts, as these are not provided in the question, but for the principle of the adjustment.