Day: May 1, 2022

A bank statement shows a credit balance of £1,500.

A payment of £500 and a receipt of £1,250 were included in the cash book but have not yet appeared on the bank statement.

Bank interest payable of £1,100 had been correctly recorded in the cash book but due to a bank error had been recorded in the bank statement as £1,000.

What is the cash book balance?

Select ONE answer:

1. £650
2. £850
3. £2,150
4. £3,350

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct ==> £1,500 – £500 + £1,250
4. Not correct

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