Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

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

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

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