Waec Model Questions Vol1 2024 Financial Accounting Question 5

A business keeps a single‑column cash book (cash and bank combined). The following entries were recorded for June (all amounts in ₦): Receipts - Cash sales 35,000; Collection from debtors 10,000; Loan received 5,000; Interest received 1,000; Other income 3,000. Payments - Purchase of inventory (cash) 20,000; Payment to creditors 12,000; Rent paid by cheque 5,500; Salary paid (cash) 4,200; Bank charges (erroneously recorded as 300). The cash book shows a closing balance of ₦12,000. The bank statement at month‑end shows a balance of ₦12,800. Reconciliation items identified are: - A cheque for ₦2,200 issued but not yet presented. - A deposit of ₦1,500 made on 28 June not yet reflected. - The bank incorrectly charged ₦200 for a service fee (the correct amount should be ₦0). Prepare the bank reconciliation and state the corrected cash book balance after adjusting for the error.