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WAEC Financial Accounting 2020 Question 2

Question 2

Banking and Bank Reconciliation

When bank charges are discovered in a bank statement, the adjustment is effected in the

  1. A.bank reconciliation statement.
  2. B.cash book.
  3. C.suspense account.
  4. D.bank loan account.
Show the answer and explanation

Answer: B (cash book.)

Explanation

Bank charges are a real cost the business did not know about, so the cash book is updated.