Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

At the end of the month, a business bank statement reported a credit balance of $12\,697. This did not match the balance in the cash book. The following discrepancies were identified. 1. A cheque received, $7\,170, was entered in the cash book as $7\,710. 2. A cheque paid in, $2\,400, had not yet been cleared by the bank. 3. A standing order, $450, was shown in the cash book but had not been processed by the bank. 4. Bank interest payable of $642 had not been recorded in the cash book. What was the cash book balance before the necessary corrections were made?

  • A$9\,565
  • B$13\,429
  • C$14\,995
  • D$15\,829

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