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. (c) State one limitation of a bank reconciliation statement.

Mark scheme

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

1. B1 for any valid limitation (1) Limitations could include: * Does not detect errors in the bank statement. * Does not prevent fraud by the bank or employee collusion. * Only reconciles the bank balance, not other accounts. * It is a snapshot at a point in time, quickly outdated.