Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

The bank column in the cash book showed a credit balance of $2915. This was not the same as the balance shown on the bank statement. It was later found that: 1. a bank transfer of $150 from a customer had not been entered in the cash book 2. a cheque for $450 received from a customer had not been entered on the bank statement 3. a cheque for $530 paid to a supplier had been entered incorrectly in the cash book as $350, although the bank recorded it correctly 4. bank charge of $25 had not been entered in the cash book. Once these items had been adjusted, the cash book balance matched the balance on the bank statement. What balance was shown on the bank statement before any adjustments were made?

  • A$2520 debit
  • B$2520 credit
  • C$3420 debit
  • D$3420 credit

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