Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

A bank statement shows a credit balance of $1500$. A payment of $500$ and a receipt of $1250$ were entered in the cash book, but they do not yet appear on the bank statement. Bank interest payable of $1100$ was recorded correctly in the cash book, but because of a bank error it was shown on the bank statement as $1000$. What is the balance in the cash book?

  • A$650$
  • B$850$
  • C$2150$
  • D$3350$

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