Day: May 13, 2024

In preparing Alex Ltd’s bank reconciliation statement at 31 March 2023, which THREE of the following items would give rise to amendments to the cash book?

A Bank charges £380
B Error by bank £1,000 (cheque incorrectly debited to the account)
C Lodgements not credited £4,580
D Outstanding cheques £1,474
E Direct debit payment £350
F Cheque paid in by the company and dishonoured £400

Select ONE answer:

1. A, B, C
2. A, C, D
3. A, D, E
4. A, E, F

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Bank charges, direct debits and dishonoured cheques will all be written into the cash book. The other items affect the balance per the bank statement only.

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