Day: April 27, 2024

The following information relates to a bank reconciliation.

The balance in the cash book before taking the items below into account was £8,970 overdrawn.

• Bank charges of £550 on the bank statement have not been entered in the cash book.
• The bank has credited the account in error with £425 which belongs to another customer.
• Cheque payments totalling £3,275 have been entered in the cash book but have not been presented for payment.
• Cheques totalling £5,380 have been correctly entered on the debit side of the cash book but have not been paid in at the bank.

What was the overdrawn balance as shown by the bank statement?

Select ONE answer:

1. £6,990
2. £10,650
3. £11,200
4. £11,625

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 – Cash book balance b/f £(8,970) – Bank charges  £(550) = Corrected cash book £(9,520) + Error £425 + Unpresented cheques £3,275 – Uncredited lodgements £(5,380) = Bank statement balance £(11,200)
4. Not correct

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