Cambridge IGCSE and O Level Accounting Workbook 2 Christina balanced her cash book on 31 October 20-4 and brought down a debit balance of
$3280 on 1 November. Her bank statement for October 20-4 showed a closing credit balance
of $208
When comparing the cash book with the bank statement, Christina found the following:
1 These items appeared only in the cash book:
Cheque, $280, paid to Wilma, a creditor supplier
Cash sales $1643
2 These items appeared only on the bank statement:
Bank charges of $109
Insurance, $850, paid by standing order
3 The bank had debited Christina's business bank account with a standing order for $750, for
a life insurance policy premium which should have been paid from Christina's personal bank
account
a Make any additional entries required in Christina's cash book. Calculate a new bank balance
at 31 October 20-4. Bring down the balance on 1 November 20-4.
b Prepare a bank reconciliation statement at 31 October 20-4.
State the bank balance that should be shown in Christina's statement of financial position on
31 October 20-4 and state whether it is an asset or a liability
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