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WAEC Financial Accounting 2025 Question 4

Question 4

Banking and Bank Reconciliation

Use the following information to answer questions 4 and 5
1/2/2021 Balance as per bank statement ₦90,000 O/D: Cheques of ₦30,000 issued on 20/2/2021 and presented to bank for payment on 7/3/2021: Cheques of ₦40,000 issued on 22/2/2021 and credited by the bank on 8/3/2021.
The balance as per the adjusted cash book on 28/2/2021 is

  1. A.₦100,000 DR.
  2. B.₦100,000 CR.
  3. C.₦80,000 DR.
  4. D.₦80,000 CR.
Show the answer and explanation

Answer: D (₦80,000 CR.)

Explanation

Bank overdraft 90,000, plus unpresented cheques 30,000, less uncredited cheques 40,000 = 80,000 overdrawn, which is a credit balance in the cash book.