IGCSE Accounting: Bank reconciliation (Cambridge 0452) – Practice Questions

Syllabus edition note. This resource follows the Cambridge IGCSE Accounting 0452 syllabus (and Cambridge O Level Accounting 7707, which has the same subject content for the same series) for exams in 2027, 2028 and 2029 (version 1), first examined in the March 2027 series in India and the June 2027 series elsewhere. If you sit 0452 in November 2026, you sit the 2026 syllabus (version 2), which differs: Paper 1 has 35 multiple-choice marks in 1 hour 15 minutes, not 40 marks in 1 hour 30 minutes; Topic 7 is “Accounting principles and policies”, without 7.2 Ethical considerations or 7.3 Technology and sustainability; 4.4 is “Irrecoverable debts and provision for doubtful debts”; income statements are named instead of statements of profit or loss; three-column running balance accounts are not required; Clubs and societies is 5.4 and Manufacturing accounts 5.5; and 6.3 is “Inter-firm comparison”. For this topic, the 2026 syllabus also lists dividends among the cash book updates, and it does not include the impact of digital transactions on bank reconciliation or on control accounts. If you sit in November 2026, work from the 2026 syllabus on the Cambridge International website.

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions practise syllabus section 3.3 Bank reconciliation from the Cambridge IGCSE Accounting 0452 syllabus for exams in 2027, 2028 and 2029. Teaching is in the study guide and revision notes. Course pages: Cambridge IGCSE Accounting hub and printable checklist. All amounts are in dollars.

Questions

1. State two purposes of a bank statement for a business. [2]

2. For each item found on a bank statement, state whether it is entered on the debit side of the cash book, entered on the credit side, or shown only on the bank reconciliation statement.

(a) Bank charges of 24. [1] (b) Bank interest received of 11. [1] (c) A credit transfer of 430 from a customer. [1] (d) A cheque issued last week that the bank has not yet paid. [1] (e) A standing order of 85 for rent. [1] (f) A deposit made on the last day of the month and not yet shown by the bank. [1]

3. Tarn Hollow Bakery’s cash book shows a bank balance of 2,815 (debit) before updating. The bank statement shows: bank charges 38; interest received 14; a credit transfer from a customer 560; a direct debit for insurance 126; and a standing order for rent 210. The bakery also finds that a cheque for 94 was entered in the cash book as 49.

(a) State the entry needed for each of the six items, giving the side of the cash book and the amount. [6] (b) Calculate the updated cash book balance. [2]

4. After updating its cash book, Cobb Lane Cycles has a balance of 3,640 at 31 July 2027. Unpresented cheques total 425, 180 and 310. A deposit of 960 has not yet been credited by the bank. The bank has also taken 75 from the account in error, a payment that belongs to another customer. Prepare the bank reconciliation statement, starting with the updated cash book balance. [6]

5. A payment of 840 is recorded in the cash book for a cheque that was written for 480 to a supplier.

(a) State whether the cash book balance is too high or too low. [1] (b) State the correcting entry in the cash book, including the side and the amount. [2]

6. Hadley Bright Interiors has an overdrawn balance of 1,260 in its cash book before updating. The bank statement shows bank charges of 45, interest on the overdraft of 31, a credit transfer received of 700 and a standing order of 150. Unpresented cheques total 380 and an uncredited deposit is 520. There are no errors.

(a) Calculate the updated cash book balance. [3] (b) Prepare a bank reconciliation statement and state the overdrawn balance shown on the bank statement. [4]

7. A business has an updated cash book balance of 3,590 and a bank statement balance of 4,125. The only differences are an uncredited deposit of 640 and some unpresented cheques. Calculate the total of the unpresented cheques. [3]

8. Explain the difference between a standing order and a direct debit, and state how each is entered when it first appears on the bank statement. [4]

9. A business has moved from taking cheque payments to card payments and online bank transfers. Explain two ways in which this affects its bank reconciliation. [4]

10. A trainee says: “Our bank reconciliation statement agrees, so the cash book must be completely correct.” Evaluate this statement. [4]

11. Marisol Tiles has this cash book (bank column) for June 2027 before updating.

Debit	Amount	Credit	Amount
1 Jun Balance b/d	4,280	3 Jun Cheque 0715	640
8 Jun Linden Court Ltd	1,220	10 Jun Cheque 0716	1,150
19 Jun Brook Mill Ltd	775	17 Jun Cheque 0717	295
29 Jun Cash sales banked	1,360	24 Jun Cheque 0718	870
		28 Jun Cheque 0719	415

The bank statement for June shows:

Details	Paid out	Paid in
Opening balance 4,280
Linden Court Ltd		1,220
Cheque 0715	640
Cheque 0716	1,150
Brook Mill Ltd		775
Cheque 0717	259
Credit transfer, Quarry Row Ltd		530
Deposit credited in error (another customer’s)		240
Direct debit, electricity	187
Standing order, insurance	120
Interest received		18
Bank charges	41
Closing balance 4,666

(a) Update the cash book, showing each entry and the new balance. [7] (b) Prepare the bank reconciliation statement at 30 June 2027. [5]

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Answers

1. Any two of: an independent record to check the cash book against; it shows items the business has not yet recorded, such as charges; it helps to find errors or unauthorised payments; it confirms the balance. One mark for each purpose stated [1] [1]. [2] Examiner insight: Two different purposes are needed for two marks. Repeating one idea in other words is a single point.

2. (a) Credit side [1]. (b) Debit side [1]. (c) Debit side [1]. (d) Bank reconciliation statement only (an unpresented cheque is already in the cash book) [1]. (e) Credit side [1]. (f) Bank reconciliation statement only (an uncredited deposit is already in the cash book) [1]. [6] Examiner insight: In (d) and (f), being able to say “already in the cash book” shows you will not mix up the two timing differences.

3. (a) Bank charges: credit 38 [1]. Interest received: debit 14 [1]. Credit transfer: debit 560 [1]. Direct debit: credit 126 [1]. Standing order: credit 210 [1]. Cheque error: credit a further 45, since 94 less 49 was left out [1]. (b) 2,815 + 560 + 14 = 3,389; less 38 + 126 + 210 + 45 = 419 [1]; updated balance 2,970 debit [1]. [8] Examiner insight: Give both side and amount. An amount with no side leaves the direction unclear, and a wrong side changes the balance in part (b).

4. Balance per updated cash book 3,640 [1]; add unpresented cheques 915 (425 + 180 + 310), giving 4,555 [1]; less uncredited deposit 960, giving 3,595 [1]; less bank error 75 [1]; balance per bank statement 3,520 [1]; clear heading and labelled lines throughout [1]. [6] Examiner insight: Showing a subtotal after each adjustment makes it easy to see where a sign went wrong.

5. (a) Too low, because payments were overstated by 360 [1]. (b) Debit the cash book (bank) with 360 [1]; the amount is 840 − 480 = 360 [1]. [3] Examiner insight: The easiest check on direction is to ask what the balance should do. If payments were recorded too high, the balance must rise, so the correction is a debit.

6. (a) Start at −1,260 (overdrawn) [1]. Credits: 45 + 31 + 150 = 226, giving −1,486; debit: +700 [1]; updated balance −786, an overdraft of 786 [1]. (b) Balance per updated cash book −786 [1]; add unpresented cheques 380, giving −406 [1]; less uncredited deposit 520, giving −926 [1]; balance per bank statement: overdrawn 926 [1]. [7] Examiner insight: A minus sign keeps the adding and deducting the same as for a favourable balance. Label the final figure as overdrawn so it is not read as money in the bank.

7. Statement balance = updated cash book + unpresented cheques − uncredited deposit [1]. So unpresented cheques = 4,125 − 3,590 + 640 [1] = 1,175 [1]. [3] Examiner insight: Write the relationship first, then substitute. Check by rebuilding: 3,590 + 1,175 − 640 = 4,125.

8. A standing order is an instruction from the business to its bank to pay a fixed amount on set dates [1]. A direct debit is a payment collected from the account by another party, and the amount can change [1]. Neither is in the cash book until the statement shows it [1], so each is entered on the credit side of the cash book [1]. [4] Examiner insight: A question on a difference needs both items described, ideally with a contrast such as who starts the payment.

9. Any two, each stated and explained. Payments clear faster, so there are fewer unpresented cheques and uncredited deposits to list. Online access allows more frequent reconciliation, so errors are found sooner. Software can match bank data to the records, saving time. Charges and direct debits still appear on the statement first, so the cash book still needs updating. One mark for the effect and one for its consequence, for each of two ways [1] [1] [1] [1]. [4] Examiner insight: Each way needs an effect and its consequence for reconciliation. “It is quicker” alone does not say why it matters here.

10. Agreement shows the two balances differ only by the items listed [1]. It does not prove everything is right: a payment posted to the wrong expense account would not show [1], nor would a fraudulent payment recorded in both records [1]. Judgement: it gives good evidence about the bank balance, but it checks the cash record only, so other checks are still needed [1]. [4] Examiner insight: On an evaluation question, a judgement that follows from your points is stronger than a list.

11. (a) Debit: credit transfer 530 [1]; interest received 18 [1]; cheque 0717 error 36, because 295 was entered but 259 was paid [1]. Credit: direct debit 187 [1]; standing order 120 [1]; bank charges 41 [1]. Balance 4,265 + 584 − 348 = 4,501 [1]. (b) Balance per updated cash book 4,501 [1]; add unpresented cheques 0718 and 0719, 1,285, giving 5,786 [1]; less uncredited deposit 1,360, giving 4,426 [1]; add bank error 240 (the statement is too high), giving 4,666 [1]; balance per bank statement 4,666, which agrees with the statement [1]. [12] Examiner insight: The 240 is not entered in the cash book. Decide whether the statement is too high or too low before choosing the sign.

Where marks are usually lost

• Naming the right item but the wrong side of the cash book.
• Entering unpresented cheques or uncredited deposits in the cash book instead of the reconciliation statement.
• Starting the reconciliation from the cash book balance before updating it.
• Using the wrong sign for a bank error, because the effect on the statement was not checked first.
• Dropping the word “overdrawn” on an overdraft.

Next steps

• Review the revision notes and the study guide.
• Visit the Cambridge IGCSE Accounting hub and tick off the checklist.
• Take the free diagnostics to see what to revise next.
• Book a free trial class.

Frequently asked questions

Where do bank charges go in the cash book? Bank charges are an outflow, so they are entered on the credit side of the cash book’s bank column, like a direct debit or standing order. Putting them on the debit side is a common error in Cambridge IGCSE Accounting (0452) questions.

Do you add or deduct an unpresented cheque in a bank reconciliation? Working from the cash book to the bank statement, add unpresented cheques, because the statement has not yet been reduced by them, and deduct uncredited deposits. If you work from the statement to the cash book, every sign reverses, so pick one direction and use it consistently.

How do you treat an error made by the bank? A bank error is not entered in the cash book; it appears on the reconciliation statement. Decide whether the error has made the statement too high or too low before choosing the sign, and the business should tell the bank.

Which balance should a bank reconciliation start from? Start from the updated cash book balance, after entering items such as charges and credit transfers, not the original figure. Starting from the un-updated balance is a common way to lose marks.

Official syllabus

Cambridge IGCSE Accounting 0452 syllabus for exams in 2027, 2028 and 2029 (version 1), published by Cambridge University Press & Assessment (Cambridge International Education). Section 3.3 Bank reconciliation.