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JAMB Principles of Accounts 2012 Question 14

Question 14

Banking and Bank Reconciliation

Given:
Cash book balance ₦5,000
Dishonoured cheque ₦1,000
Direct credit ₦800
Direct debit ₦500
The adjusted cash book balance is

  1. A.₦6,300
  2. B.₦4,300
  3. C.₦3,700
  4. D.₦2,700
Show the answer and explanation

Answer: B (₦4,300)

Explanation

Adjusted cash book = 5 000 − dishonoured cheque 1 000 + direct credit 800 − direct debit 500 = ₦4 300.