Accounting – 3.3 Bank reconciliation | e-Consult

Question 1

On 1st January, ABC Company had a cash book balance of £2,500. During January, the following transactions occurred:

• Bank charges of £15 were debited to the bank account.
• Bank interest received of £8 was credited to the bank account.
• A correction was required for an error of £25, where a payment of £100 was incorrectly recorded as £75.
• A credit transfer of £50 was received from XYZ Ltd.
• A direct debit of £30 was taken by a supplier.
• Dividends of £100 were received.
• A standing order payment of £50 was made.

Prepare an updated cash book extract as at 31st January.