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JAMB Principles of Accounts 2016 Question 31

Question 31

Banking and Bank Reconciliation

A major cause of discrepancy between bank statement and the cash book that overstates the bank statement balance is the

  1. A.direct payment
  2. B.commission paid
  3. C.direct withdrawal
  4. D.interest received
Show the answer and explanation

Answer: A (direct payment)

Explanation

A direct payment into the account by a customer is credited by the bank before the business records it, so the bank statement shows more.