Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A business’s bank statement showed a credit balance of $4520, but this did not match the cash book. The following items were found: (1) Bank charges of $89 had not been recorded in the cash book. (2) Unpresented cheques paid to suppliers totalled $680. (3) A dishonoured cheque for $210 was listed on the bank statement, but had not been entered in the cash book. (4) Sales receipts of $750 had been entered in the cash book, but were absent from the bank statement. What bank balance should be reported in the statement of financial position?

  • Acurrent asset $4501
  • Bcurrent asset $4590
  • Ccurrent liability $4450
  • Dcurrent liability $4539

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI