The cash book of a business shows a credit balance of $12 500 at 30 June. Bank charges of $2000 have not yet been entered in the cash book.
A cheque for $20 000 received from a debtor, and a cheque for $3000 paid to a creditor have been entered in the cash book, but have not yet been shown on the bank statement.
What is the balance shown on the bank statement at 30 June?

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 May/June 2011 examination, Paper 1 Variant 2 (9706_s11_qp_12.pdf).

Question

The cash book of a business shows a credit balance of $12 500 at 30 June. Bank charges of $2000 have not yet been entered in the cash book.
A cheque for $20 000 received from a debtor, and a cheque for $3000 paid to a creditor have been entered in the cash book, but have not yet been shown on the bank statement.
What is the balance shown on the bank statement at 30 June?

Oracle Prep · Accepted Answer

The correct answer is D: $31 500 debit.

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