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WAEC Financial Accounting 2022 Question 10

Question 10

Banking and Bank Reconciliation

Use the following information to answer questions 9 and 10
Cash book balance (credit): $750
Uncredited cheques: $500
Unpresented cheques: $1,680
Direct credit: $300
Bank charges: $150
Balance as per bank statement is

  1. A.$1,430 Cr.
  2. B.$580 Dr.
  3. C.$430 Cr.
  4. D.$430 Dr.
Show the answer and explanation

Answer: B ($580 Dr.)

Explanation

From the adjusted overdraft of 600: add unpresented cheques 1,680 and deduct uncredited cheques 500, giving 580 in the business's favour.