A debit balance of $2600 was shown for the bank in the cash book of a business at the end of the month.
The bank statement included bank charges of $1200 and interest received of $500, both of which had not been entered in the cash book.
The bank column of the cash book had been overcast by $200.
The cash book included a payment of $800 which had not yet appeared on the bank statement.
What was the credit balance shown on the bank statement at the end of the month?

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 2025 examination, Paper 1 Variant 2 (9706_s25_qp_12.pdf).

Question

A debit balance of $2600 was shown for the bank in the cash book of a business at the end of the month.
The bank statement included bank charges of $1200 and interest received of $500, both of which had not been entered in the cash book.
The bank column of the cash book had been overcast by $200.
The cash book included a payment of $800 which had not yet appeared on the bank statement.
What was the credit balance shown on the bank statement at the end of the month?

Oracle Prep · Accepted Answer

The correct answer is C: $2500.

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