A company's bank statement showed a credit balance of $2000.
The following errors were found.
1 A receipt of $2700 and a payment for $3000 were recorded on the bank statement. Both had been omitted from the cash book.
2 Bank charges of $500 were correctly shown on the bank statement but had been recorded as $600 in the cash book.
What was the cash book balance before the errors were corrected?

Q: What topic does this question test?

This question tests Bank Reconciliation in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2020 examination, Paper 1 Variant 2 (9706_m20_qp_12.pdf).

Question

A company's bank statement showed a credit balance of $2000.
The following errors were found.
1 A receipt of $2700 and a payment for $3000 were recorded on the bank statement. Both had been omitted from the cash book.
2 Bank charges of $500 were correctly shown on the bank statement but had been recorded as $600 in the cash book.
What was the cash book balance before the errors were corrected?

Oracle Prep · Accepted Answer

The correct answer is C: $2200.

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