Question 14
Banking and Bank ReconciliationGiven:
Balance as per cash book ₦20,000
Unpresented cheques ₦5,200
Direct credit to the bank ₦1,000
Direct debit from the bank ₦1,000
Credit in the cash book ₦500
Calculate the balance as per bank statement at the end of the year
- A.24,700
- B.25,200
- C.26,200
- D.27,700
Show the answer and explanation
Answer: A (24,700)
Explanation
Adjusted cash book = 20 000 + 1 000 − 1 000 = ₦20 000. Bank statement = 20 000 + unpresented cheques 5 200 − 500 not yet credited = ₦24 700.