Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

At the end of the month, the cash book of a business showed a debit balance of $2600 for the bank. On the bank statement, bank charges of $1200 and interest received of $500 appeared, and neither item had been recorded in the cash book. The bank column in the cash book had been overcast by $200. There was a payment of $800 in the cash book that had not yet been shown on the bank statement. What credit balance did the bank statement show at the end of the month?

  • A$900
  • B$1700
  • C$2500
  • D$2700

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