# CIE Accounting Paper-2: Specimen Questions with Answers 34 - 35 of 103

## Passage

1. Mr. Stanley had 2 accounts with HSBC Bank named A/c 1 and A/c 2. As on 31.12. 2015, his cash book showed balances of £540 and £27040 in the two A/c’s respectively.

On examining the bank statements, the following were noticed:

(i) £2700 has been transferred from A/c 2 to A/c 1 by the bank without intimating Mr. Stanley.

(ii) £10 have been bank charges in both the accounts, which is not intimated to Mr. Stanley

(iii) Cheque for £542 issued on A/c 1 in November not yet presented in bank

(iv) A cheque of £427 deposited by Mr. Stanley in A/c 2 has been credited by bank in A/c 1

## Question number: 34 (4 of 5 Based on Passage) Show Passage

### Write in Short

What is the balance in Mr. Stanley’s A/c 1 as per HSBC bank?

### Explanation

The balance of Mr. Stanley’s A/c 1 as per bank pass book is £4199

 Particulars Amount Amount Bank balance as per cash book (Dr) 540 Add: Transfer from A/c 2 without notice 2700 Cheque issued but not presented 542 Cheque deposited in A/c 2 but wrong credit in A/c 1 427 3669 4209 Less: Bank charges in pass book but not in cash book 10 Bank Balance as per pass book (Cr) 4199

## Question number: 35 (5 of 5 Based on Passage) Show Passage

### Write in Short

State any 3 differences between a bank statement and a bank reconciliation statement?

### Explanation

The three differences between a bank statement and a bank reconciliation statement is as follows:

(i) Bank statement is prepared by the bank while the bank reconciliation statement is prepared by the account holder or customer.

(ii) It is compulsory for the bank to prepare the bank statement, while it is optional for the customer to prepare the reconciliation statement.

(iii) The bank prepares this statement to inform the customer about all the transactions that have taken place during a period. While the reconciliation is prepared by the customer to check the bank balance with the cash book balance.