Day: April 24, 2024

Alex’s cash book at 31 December 2023 showed a bank balance of £565 overdrawn.

On comparing this with the bank statement at the same date, he discovered the following.

A  A cheque for £57 drawn by him on 29 December 2023 had not yet been presented for payment.

B  A cheque for £92 from a customer, which was paid into the bank on 24 December 2023, has been dishonoured on 31 December 2023.

The correct balance in the cash book as at 31 December 2023 is?

Select ONE answer:

1. £473 DR
2. £714 CR
3. £657 CR
4. £473 CR

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 – (£565) – £92 = (£657). The cheque for £57 is already included in the cash book.
4. Not correct

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