Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

At 30 April, the cash book for a business has a debit balance of $\$4200$. On the bank statement, a direct debit of $\$200$ for insurance has been shown, although it has not yet been recorded in the cash book. In addition, a cheque paid to a supplier was entered correctly in the cash book as $\$650$, but the bank statement shows it as $\$690$. What is the bank amount to be reported in the statement of financial position at 30 April?

  • A$\$3960$
  • B$\$4000$
  • C$\$4360$
  • D$\$4400$

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