O Level Accounting (7707)•7707/11/M/J/25

Explanation
Insufficient information to calculate the updated cash book balance Steps:
- Bank statement balance is $740, but pre-update cash book balance is not provided.
- Record bank charges by subtracting $30 from cash book balance.
- Outstanding cheque of $150 is already deducted in cash book; no adjustment needed for it.
- Cannot compute numerical updated balance without original cash book figure.
Why A is correct:
- Not enough information to confirm; options assume unstated original cash book balance.
Why the others are wrong:
- B. $620: Matches inferred pre-update cash book via reconciliation (bank + outstanding cheque effect adjusted for charges), but question asks for post-update.
- C. $860: Incorrectly subtracts charges from bank + outstanding cheque without proper original cash book.
- D. $890: Adds outstanding cheque to bank statement, overlooking charges adjustment to cash book.
Final answer: Not enough information.
Topic: Bank reconciliation
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