OxfordAQA IGCSE Accounting: Bank reconciliation statements (9215) – Practice Questions

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 are written for the OxfordAQA International GCSE Accounting (9215) specification, version 1.2, section 3.2, on preparing and understanding the use and purpose of bank reconciliation statements. The qualification is untiered. All businesses and figures are invented, and all amounts are in dollars. Revise first with the study guide and the revision notes. The course hub and checklist show where this topic fits, and the free diagnostics show where to start.

Questions

1. State two reasons why the balance on a bank statement may differ from the balance in the cash book. [2]

2. State the purpose of a bank statement. [2]

3. Rushcombe Timber compares its cash book with its bank statement. For each item, state whether it needs an entry in the cash book (give the side) or is a reconciling item on the bank reconciliation statement only.

(a) Bank charges of 42 shown on the bank statement. [1] (b) A cheque for 360 issued to a supplier, not yet on the bank statement. [1] (c) A direct debit of 95 for electricity shown on the bank statement. [1] (d) A banking of 500 made on the last day of the month, not yet on the bank statement. [1] (e) Bank interest received of 18 shown on the bank statement. [1] (f) A credit transfer of 275 from a customer shown on the bank statement. [1]

4. The cash book of Rushcombe Timber shows a debit balance of 3,120. Using your answers to question 3 for bank charges (42), direct debit (95), bank interest received (18) and the credit transfer (275), and also taking account of a receipt of 180 that was entered in the cash book as 810, calculate the updated cash book balance. [5]

5. Explain the difference between an unpresented cheque and an outstanding banking, and state the effect of each on the bank reconciliation statement. [4]

6. Mistley Garden Supplies has a bank statement balance of 2,341 (credit). It has three unpresented cheques of 175, 240 and 96, and one outstanding banking of 1,030. Prepare the bank reconciliation statement at 31 March and state the balance per the updated cash book. [6]

7. The bank statement of Mistley Garden Supplies shows a cheque for 140 that was taken from the account in error because it belonged to another customer. Explain how this should be dealt with, and why the cash book is not changed. [3]

8. Bexhill Books is overdrawn. Its cash book shows a credit balance of 1,845. The bank statement shows a standing order of 120, overdraft interest of 36 and a credit transfer from a customer of 400, none of which is in the cash book. The business has an unpresented cheque of 290 and an outstanding banking of 515. The bank statement shows an overdraft.

(a) Calculate the updated cash book balance. [3] (b) The bank statement overdraft is 1,826. Prepare the bank reconciliation statement. [3]

9. Ilkley Print has a cash book debit balance of 6,215 on 30 September. The bank statement shows the following that are not yet in the cash book: bank charges 64, a direct debit 210, a standing order 350, a credit transfer from a customer 1,120 and bank interest received 27. The business finds that a cheque for 530 for repairs was entered in the cash book as 350. It has unpresented cheques of 480, 195 and 322, and an outstanding banking of 960. The bank also credited a deposit of 400 to the account in error. The bank statement balance is 6,995 (credit).

(a) Prepare the bank column of the cash book (both sides, with the balance carried down). [6] (b) Prepare the bank reconciliation statement. [6]

10. A business has a bank statement balance of 3,950 (credit) and an updated cash book balance of 3,415. It has an outstanding banking of 600. The bank wrongly debited the account with a cheque of 85 that belongs to another customer. Calculate the total of the unpresented cheques. [4]

11. Explain two ways in which a business benefits from preparing a bank reconciliation statement regularly. [4]

12. The cash book of a small business shows a debit balance of 2,000. Three errors are found in it: a cheque received for 240 was not entered; a payment of 150 was entered on the debit side instead of the credit side; and the debit side was added up 100 too low. Calculate the corrected balance. [5]

Answers

1. The bank has recorded an item that the business has not yet entered, for example bank charges or a standing order [1]. The business has recorded an item that the bank has not yet processed, for example an unpresented cheque (or an outstanding banking) [1]. [2] Examiner insight: Two different reasons are normally needed; two items from the same group are likely to be read as one reason.

2. It is a record of the transactions on the account, produced by the bank [1], so that the business can check its own cash book against it [1]. [2] Examiner insight: Saying what it is and what it is used for gives two separate points; describing it twice in different words does not.

3. (a) Cash book entry, credit [1]. (b) Reconciling item only (unpresented cheque) [1]. (c) Cash book entry, credit [1]. (d) Reconciling item only (outstanding banking) [1]. (e) Cash book entry, debit [1]. (f) Cash book entry, debit [1]. [6] Examiner insight: Giving the side as well as “cash book” is the safest response when the question asks for it; “update the cash book” alone leaves the side unstated.

4.

Balance per cash book                                      3,120
Less bank charges (42) and direct debit (95)  = (137)      [1]
Add interest received 18 and credit transfer 275 = 293     [1]
Subtotal 3,120 - 137 + 293                                 3,276 [1]
Receipt 180 entered as 810: overstated by 630, deduct      [1]
Updated cash book balance                                  2,646 [1]

The updated balance is a debit of 2,646. [5] Examiner insight: An overstated receipt reduces the balance when corrected; candidates who add the 630 usually have the right method but the wrong direction.

5. An unpresented cheque is a payment entered in the cash book that the bank is yet to deduct [1]; it is deducted from the bank statement balance [1]. An outstanding banking is a receipt entered in the cash book that the bank is yet to credit [1]; it is added to the bank statement balance [1]. [4] Examiner insight: Linking each item to the correct direction is what separates the two points; a definition alone does not cover the effect.

6.

Mistley Garden Supplies
Bank reconciliation statement at 31 March              [1]
Balance per bank statement              2,341          [1]
Add: outstanding banking                1,030          [1]
                                        3,371
Less: unpresented cheques (175+240+96)   (511)         [1]
Balance per updated cash book           2,860          [1] [1]

The balance per the updated cash book is 2,860. The last mark is for labelling the closing line as the updated cash book balance. [6] Examiner insight: A full statement has a heading with a date and labelled lines; a column of bare numbers makes the working harder to follow and may lose credit.

7. The error was made by the bank [1], so it is corrected on the bank reconciliation statement by adding 140 to the bank statement balance, and the business should tell the bank so it can correct its records [1]. The cash book is not changed because the business recorded its own transactions correctly [1]. [3] Examiner insight: Stating who made the error is the key to the reasoning, and answers that skip it tend to describe the adjustment without justifying it.

8. (a)

Overdraft per cash book             (1,845)
Standing order and interest paid    (120) and (36)  -> (2,001)  [1]
Credit transfer received            +400                         [1]
Updated cash book balance           (1,601)                      [1]

(b)

Balance per bank statement (overdrawn)         (1,826)  [1]
Add: outstanding banking                         515
                                               (1,311)
Less: unpresented cheque                        (290)   [1]
Balance per updated cash book (overdrawn)      (1,601)  [1]

The updated cash book shows an overdraft of 1,601. [6] Examiner insight: Show the overdraft clearly as an overdraft in your answer, with brackets or a label; the figure alone does not tell the reader which way it is.

9. (a)

Cash book (bank column)                  Debit     Credit
Balance b/d                              6,215               [1]
Credit transfer, customer                1,120               [1]
Bank interest received                      27
Bank charges                                           64    [1]
Direct debit                                          210
Standing order                                        350
Correction: cheque 530 entered as 350                 180    [1]
Balance c/d                                         6,558    [1]
Totals                                   7,362      7,362    [1]

(b)

Bank reconciliation statement at 30 September
Balance per bank statement                  6,995   [1]
Add: outstanding banking                      960   [1]
                                            7,955
Less: unpresented cheques (480+195+322)      (997)  [1]
Less: bank error, deposit credited in error  (400)  [1]
Balance per updated cash book               6,558   [1] [1]

The updated cash book balance is a debit of 6,558. In (b) the last mark is for a heading and labels. [12] Examiner insight: The result of part (a) is the target for part (b); if the two do not agree, check your work again for a missed item or one on the wrong side.

10.

Bank statement balance                      3,950   [1]
Add: outstanding banking                      600   [1]
Add: bank error                                85
Adjusted balance                            4,635   [1]
Updated cash book balance                   3,415
Unpresented cheques 4,635 - 3,415           1,220   [1]

The unpresented cheques total 1,220. [4] Examiner insight: Working to a missing figure is best done by writing out the whole statement with a blank, then solving for the blank.

11. Any two benefits, each with its reason. Two examples are shown. It shows whether the cash at bank figure in the cash book is correct [1], so the figure in the statement of financial position can be relied on [1]. It reveals errors in either record [1], so they can be corrected or reported to the bank [1]. Other acceptable benefits: showing items not yet recorded so that the cash book is brought up to date, and helping to detect fraud so that the owner can act early. [4] Examiner insight: Each benefit needs its reason to earn the second point; a list of four benefits with no reasons stops short of the full tariff.

12.

Original balance                                       2,000
Cheque received not entered                    +240    [1]
Payment on the debit side: should be a credit
  so the balance falls by 2 x 150               -300   [1] [1]
Debit side under-added                         +100    [1]
Corrected balance                              2,040   [1]

The corrected balance is a debit of 2,040. [5] Examiner insight: A payment placed on the wrong side changes the balance by twice its value; using the single amount is the commonest slip on this type of question.

Where marks are usually lost

• Adding unpresented cheques to the bank statement balance, or deducting outstanding bankings.
• Writing a bank error into the cash book instead of the reconciliation.
• Putting direct debits, standing orders and bank charges on the debit side.
• Reconciling to the old cash book balance rather than the updated one.
• Losing the sign on an overdraft, or not saying that the result is an overdraft.
• Correcting a wrongly sided entry by its face value rather than twice that value.
• Leaving out the heading, date or labels on the statement.
• Giving a list in an “explain” question with no reason attached to each point.

Next steps

• Re-read the study guide for any question you missed.
• Use the revision notes for the final check.
• Return to the course hub and checklist.
• Take the free diagnostics.
• Book a free trial class at /trial/.

Frequently asked questions

Where do students usually lose marks on bank reconciliation questions? Common losses are reconciling to the old cash book balance rather than the updated one, losing the sign on an overdraft, and leaving out the heading, date or labels on the statement.

How should I set out a bank reconciliation statement in OxfordAQA International GCSE Accounting 9215? Give it a heading with a date and label every line, including the closing figure. A column of bare numbers is harder to follow and may lose credit, because marks can be given for the heading and labels as well as the figures.

How do I show an overdraft in my answer? Keep the sign or label on every overdrawn balance and say clearly that the result is an overdraft. An unlabelled figure leaves the examiner unable to tell which balance you intended.

How should I answer an explain question on bank reconciliation? Give each point with a reason attached. A list of names with no explanation does not earn the explain marks.

Official syllabus

OxfordAQA International GCSE Accounting (9215) specification, version 1.2, for International GCSE exams May/June 2026 onwards, published by OxfordAQA. Section 3.2, Verification of accounting records.