J. Khan's Cash Book (Bank column) on 30 April 2026 showed a debit balance of $1 850. The Bank Statement on the same date showed a credit balance of $1 655. On investigation, the following discrepancies were found: * Cheque received from a customer, $280, was entered in the Cash Book but not yet cleared by the bank. * Bank charges of $45 appeared on the Bank Statement but not in the Cash Book. * A direct debit for electricity of $120 was paid by the bank but not recorded in the Cash Book. * A cheque issued to a supplier for $310 was recorded in the Cash Book but not yet presented to the bank.

Mark scheme

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

1. (a)(i) J. Khan (1)
2. Cash Book (Bank Column) (Extract) (1)
3. Date | Details | Amount () || Date | Details | Amount ()
4. --- | --- | --- || --- | --- | ---
5. Apr 30 | Balance b/d | 1850 (1) || Apr 30 | Bank Charges | 45 (1)
6. | | || Apr 30 | Electricity (Direct Debit) | 120 (1)
7. | | || Apr 30 | Balance c/d | 1685 (1)
8. Total | | 1850 || Total | | 1850
9. (M1 for correct initial balance, M1 for each correct entry on credit side (bank charges, direct debit), A1 for final balance c/d)
10. (a)(ii) J. Khan (1)
11. Bank Reconciliation Statement (1)
12. As at 30 April 2026
13. Balance as per Adjusted Cash Book (1) $1 685 (1)
14. Add: Uncleared deposits (customer cheque) (1) $280 (1)
15. Less: Unpresented cheques (supplier cheque) (1) $310 (1)
16. Balance as per Bank Statement (1) $1 655 (1)
17. (M1 for heading/structure, B1 for starting balance, B1 for uncleared deposits + value, B1 for unpresented cheques + value, M1 for correct treatment (add/subtract) of items, A1 for final reconciled balance)