Question 1

**Section A**

Nautilus Marine's cash book shows a debit balance of $12,400. The bank statement shows a credit balance of $11,800. 
Upon investigation, you discover:
- Bank charges of $150 have not been entered in the cash book.
- A cheque received from a customer for $800 was returned unpaid by the bank.
- Unpresented cheques amount to $2,350.
- Outstanding lodgements amount to $3,200.

What is the revised cash book balance? (Enter numbers only)

Accepted Answer

Start with the unadjusted cash book balance. Adjust for items that are on the bank statement but not in the cash book (bank charges, dishonored cheques). Unpresented cheques and outstanding lodgements adjust the bank statement balance, not the cash book.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Adjusting the cash book for unpresented cheques or outstanding lodgements.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA FA — Financial Accounting Practice Exam 1

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