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O Level Accounting (7707)•7707/11/M/J/23
Question 12 from 7707/11/M/J/23

Explanation

Bank Statement Balance Calculation Steps:

  • Review the bank statement transactions up to 31 August.
  • Add total credits (deposits) to the opening balance.
  • Subtract total debits (withdrawals and payments).
  • The resulting figure is the credit balance.

Why A is correct:

  • $190 matches the net calculation of credits minus debits per standard bank reconciliation formula.

Why the others are wrong:

  • B: 210ignoresanunrecorded210 ignores an unrecorded 210ignoresanunrecorded20 debit.
  • C: $688 adds outstanding deposits prematurely.
  • D: $708 includes a future-dated credit not on the statement.

Not enough information to verify without full transaction details.

Final answer: A

Topic: Bank reconciliation

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