Accounting Online Program Certification Practice Test

What was the balance shown on Ali's bank statement at 30 April 20X7 after correcting for errors?

1. £3,650

2. £2,900

3. £4,300

4. £3,450

The correct answer is: £3,650

The balance shown on Ali's bank statement at 30 April 20X7, after correcting for errors, is £3,650. This value likely represents a final balance after considering various adjustments that would include outstanding checks, deposits in transit, and any errors in recording transactions either in Ali's own records or by the bank itself. To arrive at this corrected balance, careful reconciliation of Ali's bank statement with his cash book would have been necessary. This involves verifying all entries, identifying discrepancies, and correcting those that are found. Elements such as bank fees that were not previously accounted for, credits or deposits Ali made that had not yet cleared the bank, or errors in the amounts recorded would all contribute to the final balance seen on the bank statement. The other amounts may reflect balances before these adjustments were adequately addressed or could stem from different errors that were not corrected properly. Thus, the £3,650 represents a comprehensive and accurate reflection of Ali's financial position as of the specified date after all necessary corrections have been made.