Gce Model Questions Vol1 2025 Financial Accounting Question 44

The cash book of XYZ Ltd shows a balance of \(\pounds12{,}500\) on 31 March. The bank statement for the same date shows a closing balance of \(\pounds13{,}200\). The following items need to be considered:\n1. A cheque issued for \(\pounds1{,}800\) has not yet been presented to the bank.\n2. The bank has recorded a direct debit of \(\pounds620\) which is not yet entered in the cash book.\n3. A cash receipt of \(\pounds2{,}300\) was entered in the cash book as \(\pounds2{,}030\).\n4. The bank charged \(\pounds45\) for cheque collection, not recorded in the cash book.\n5. A customer's cheque of \(\pounds1{,}250\) was returned unpaid; it had been recorded as received in the cash book.\n6. The bank credited interest income of \(\pounds545\) which is not yet recorded in the cash book.\nPrepare the bank reconciliation and state the corrected cash‑book balance after all adjustments.