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JAMB Principles of Accounts 2002 Question 6

Question 6

Incomplete Records

In an incomplete reocrd, the preparation of the bank reconciliation ensures that

  1. A.all cash takings are banked
  2. B.the cash book is correct
  3. C.there are no overdrafts
  4. D.there are no hidden loans.
Show the answer and explanation

Answer: A (all cash takings are banked)

Explanation

Reconciling the bank statement with the records helps check that the cash takings have actually been paid into the bank.