Updating The Cash Book exam question Help

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jasonKarl
jasonKarl Registered Posts: 3 New contributor 🐸
Hi,

I was doing the 2007 June Iac practice exam paper; all was ok until I got to Task 2.18 balancing/updating the cash book/. I was entering all the Items from the bank statement that were not on the cash book, into the cash book, their was a Cheque for £250 on the bank statement that was not showing in the cash book, so I went ahead and entered the Cheque into the cash Book, but the examiner/answer said this is wrong?? I'm I missing something here? :crying:

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  • jasonKarl
    jasonKarl Registered Posts: 3 New contributor 🐸
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    Think I've figured it out; I'm I right in saying, that any Cheque that shows on the Companies Bank Statement has already been recorded in the Cash Book and accounted for?
  • Richard
    Richard Registered Posts: 373 Dedicated contributor 🦉
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    The purpose of doing a bank reconciliation is to make sure all entries have been accounted for correctly. It is possible for a cheque to be issued and not recorded in the cash book. However, on the exam question, the £250 cheque appears to have been an unpresented cheque from a previous bank rec - if you compare the opening balance on the cash book to the opening balance on the bank statement, you will see a difference of £250.
  • jasonKarl
    jasonKarl Registered Posts: 3 New contributor 🐸
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    Hey Richard,

    Thanks for the repile, after around 2 hours of going insane last night, I noticed this to :thumbup1:



    Richard wrote: »
    The purpose of doing a bank reconciliation is to make sure all entries have been accounted for correctly. It is possible for a cheque to be issued and not recorded in the cash book. However, on the exam question, the £250 cheque appears to have been an unpresented cheque from a previous bank rec - if you compare the opening balance on the cash book to the opening balance on the bank statement, you will see a difference of £250.
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