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JAMB Principles of Accounts 1998 Question 13

Question 13

Banking and Bank Reconciliation

State Bank collected a note for A-Makura Company. This collection, not yet recorded in Al-Makura's books, appears on the bank reconciliation as

  1. A.an addition to balance per books
  2. B.a deduction from balance per bank statement
  3. C.an addition to balance per bank statement
  4. D.a deduction from balance per books.
Show the answer and explanation

Answer: A (an addition to balance per books)

Explanation

Money collected by the bank but not yet in the cash book must be added to the balance per books.