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WAEC Financial Accounting 2022 Question 9

Question 9

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
The adjusted cash book balance is

  1. A.$1,200 Cr.
  2. B.$900 Cr.
  3. C.$600 Cr.
  4. D.$300 Dr.
Show the answer and explanation

Answer: C ($600 Cr.)

Explanation

Overdraft 750 (credit) − direct credit 300 + bank charges 150 = $600 credit (overdrawn).