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WAEC Financial Accounting 1991 (August) Question 26

Question 26

Banking and Bank Reconciliation

Where the cash book does not show a credit balance in a bank reconciliation; unpresented cheques are I. added to the cash book balance; II. added to the bank statement balance; III. deducted from the cash book balance.

  1. A.I only
  2. B.II only
  3. C.III only
  4. D.I and II only
  5. E.I and III only.
Show the answer and explanation

Answer: A (I only)

Explanation

Starting from a debit cash book balance, add back cheques not yet presented to reach the (higher) bank statement balance.