Accounting 9706 · AS & A Level · Reconciliation and verification
Reconciliation and verification — practice question
Samira runs a business named SJB Supplies. She prepares a bank reconciliation statement for the business at the end of every month. On 31 January 2025, the cash book balance (bank columns) for the business was $324 debit. On that same date, the bank statement showed a balance of $160 debit.
(a)[2]
Explain why a positive balance is recorded as a debit balance in a cash book and why an overdrawn balance is also recorded as a debit balance on a bank statement.
(b)[7]
Prepare an updated cash book at 31 January 2025. Dates do not need to be shown.
(c)[4]
Prepare a bank reconciliation statement at 31 January 2025.
(d)[2]
State two features of a direct debit.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A positive cash book balance/for the business is an asset/owned by the business” …