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2 Rudra prepares bank reconciliation statements for his business at the end of each month.
REQUIRED
(a) State three reasons why it is important to a business to prepare bank reconciliation statements
at regular intervals.
1 ................................................................................................................................................
...................................................................................................................................................
2 ................................................................................................................................................
...................................................................................................................................................
3 ................................................................................................................................................
...................................................................................................................................................
[3]
Additional information
On 31 March 2022 the balance shown in the business’s cash book (bank columns) was
$3060 overdrawn. This did not agree with the balance shown on the business’s bank statement on
this date. The difference in the two balances was accounted for by the following:
1 Rudra had omitted to record a direct debit for water charges of $442.
2 There were unpresented cheques: TK Stores $482, RH Supplies $1043.
3 Bank charges, $85, appeared on the bank statement but had not yet been recorded in the
cash book.
4 Rudra had debited the cash book with cash takings, $893, but this had not yet been recorded
by the bank.
5 A cheque payment to Peter, $320, had been correctly recorded in the bank statement, but
had been entered in the cash book as $230.
6 The bank statement included an entry for a dishonoured cheque for $582 received by Rudra
from Jamia. No entries had been made in the cash book to record the dishonoured cheque.
7 An error had been made in the cash book. Interest received, $225, had been correctly
recorded in the bank statement, but had been credited in the cash book.
© UCLES 2023 9706/22/M/J/23 [Turn over
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REQUIRED
(b) Prepare the cash book to show the updated balance at 31 March 2022. Dates are not
required.
Cash book (bank columns)
$ $
[6]
(c) Prepare a bank reconciliation statement to show the bank statement balance at 31 March 2022.
Rudra
Bank reconciliation statement at 31 March 2022
$ $
Balance as per updated cash book
[4]
© UCLES 2023 9706/22/M/J/23
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(d) Define each of the following terms:
(i) unpresented cheque
...........................................................................................................................................
..................................................................................................................................... [1]
(ii) dishonoured cheque.
...........................................................................................................................................
..................................................................................................................................... [1]
[Total: 15]
© UCLES 2023 9706/22/M/J/23 [Turn over
