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GCE Financial Accounting 1990 Question 33

Question 33

Banking and Bank Reconciliation

Which of the following should be included in the adjusted cash book?

  1. A.Bank charges and commission
  2. B.Cheques issued, presented and cashed
  3. C.Bank deposits
  4. D.Cash payments made by the firm
  5. E.Opening bank overdraft.
Show the answer and explanation

Answer: A (Bank charges and commission)

Explanation

Bank charges appear first on the bank statement, so the cash book must be updated with them.