The bank statement of a business showed a credit balance of $4520. This did not agree with the cash book. The following were discovered.

1
Bank charges of $89 had not been entered in the cash book.
2
There were unpresented cheques paid to suppliers of $680.
3
A dishonoured cheque for $210 appeared on the bank statement, but was not shown in the cash book.
4
Sales receipts of $750 had been entered in the cash book, but did not appear on the bank statement.

What is the bank balance to be shown in the statement of financial position?

Q: What topic does this question test?

This question tests Bank Reconciliation Statements 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 2021 examination, Paper 1 Variant 2 (9706_m21_qp_12.pdf).

Question

The bank statement of a business showed a credit balance of $4520. This did not agree with the cash book. The following were discovered.

1
Bank charges of $89 had not been entered in the cash book.
2
There were unpresented cheques paid to suppliers of $680.
3
A dishonoured cheque for $210 appeared on the bank statement, but was not shown in the cash book.
4
Sales receipts of $750 had been entered in the cash book, but did not appear on the bank statement.

What is the bank balance to be shown in the statement of financial position?

Oracle Prep · Accepted Answer

The correct answer is B: current asset $4590.

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