Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

Jacques operates as a sole trader. On 31 January 2019, the bank statement showed a debit balance of $1875. This was different from Jacques’s cash book balance of $4327 credit.
(a)[5]

Prepare the revised cash book as at 31 January 2019. Dates are unnecessary.

(b)[4]

Prepare a bank reconciliation statement for 31 January 2019.

(c)[2]

State two reasons a business might prepare a bank reconciliation statement.

(d)[4]

Prepare a statement showing the revised profit for the year ended 31 January 2019 after making the adjustments for items 1, 2 and 3.

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