The bank statement of a business showed a credit balance of $3421, which did not agree with the balance in the cash book.

Further investigation revealed that a receipt entered in the cash book for $125 and a payment for $455 had not yet appeared on the bank statement.

The bank statement showed bank charges of $64 and a credit transfer of $177 which had not been entered in the cash book.

Which balance was shown in the cash book before making the necessary changes and preparing a reconciliation statement?

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

This question appeared in the Cambridge A-Level Accounting May/June 2024 examination, Paper 1 Variant 2 (9706_s24_qp_12.pdf).

Question

The bank statement of a business showed a credit balance of $3421, which did not agree with the balance in the cash book.

Further investigation revealed that a receipt entered in the cash book for $125 and a payment for $455 had not yet appeared on the bank statement.

The bank statement showed bank charges of $64 and a credit transfer of $177 which had not been entered in the cash book.

Which balance was shown in the cash book before making the necessary changes and preparing a reconciliation statement?

Oracle Prep · Accepted Answer

The correct answer is A: $2978.

✓ Correct Answer