WAEC Financial Accounting 2009 Question 40

Question 40

Banking and Bank Reconciliation

Use the following information to answer question 40.
Bank Statement (Date / Details / Dr ¢ / Cr ¢ / Balance ¢)
2/1/06 Balance b/d: balance 2,000
3/1/06 '23456': Dr 500, balance 1,500
4/1/06 Deposit: Cr 1,000, balance 2,500
5/1/06 Deposit: Cr 1,500, balance 4,000
6/1/06 '23457': Dr 3,000, balance 1,000

Total withdrawal is

  1. A.¢3,500
  2. B.¢2,500
  3. C.¢2,000
  4. D.¢1,000
Show the answer and explanation

Answer: A (¢3,500)

Explanation

Withdrawals are the debit entries: ¢500 + ¢3,000 = ¢3,500.