At the month end, a business bank statement showed a credit balance of $12697. This did not agree with the cash book balance. The following differences were found. 1 A cheque received, $7170, was entered as $7710 in the cash book. 2 A cheque paid in, $2400, had not been cleared by the bank. 3 A standing order, $450, was recorded in the cash book but had not been paid by the bank. 4 Bank interest payable of $642 had not been entered in the cash book. What was the cash book balance before the necessary corrections were made?

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 2023 examination, Paper 1 Variant 2 (9706_m23_qp_12.pdf).

Question

At the month end, a business bank statement showed a credit balance of $12697. This did not agree with the cash book balance. The following differences were found. 1 A cheque received, $7170, was entered as $7710 in the cash book. 2 A cheque paid in, $2400, had not been cleared by the bank. 3 A standing order, $450, was recorded in the cash book but had not been paid by the bank. 4 Bank interest payable of $642 had not been entered in the cash book. What was the cash book balance before the necessary corrections were made?

Oracle Prep · Accepted Answer

The correct answer is D: $15829.

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