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WAEC Financial Accounting 2007 Question 18

Question 18

Banking and Bank Reconciliation

Balance as per cash book N8,000 Cr
Unpresented cheques N14,400
Uncredited cheques N2,600
A cheque for N2,000 paid to a creditor had been entered in error in the cash column.
Bank commission of N800 had not been entered in the cash book
The debit side of the cash book (bank column) had been undercast by N5,000
The balance as per bank statement is

  1. A.N8,000 Cr
  2. B.N6,000 Cr
  3. C.N6,000 Dr
  4. D.N8,000 Dr.
Show the answer and explanation

Answer: B (N6,000 Cr)

Explanation

−5,800 + unpresented 14,400 − uncredited 2,600 = 6,000 in the customer's favour, a credit balance on the bank statement.