Post Utme Coal City University 2019 Accounting Question 32

Practice objective / multiple choice question 32 from the 2019 Post Utme Coal City University Accounting examination.

Post Utme Coal City University 2019 Accounting Objective / Multiple Choice
Question 32 POST_UTME_COAL_CITY_UNIVERSITY • 2019 • ACCOUNTING • objective

A bank statement shows a balance of ₦50,000, but the cash book balance is ₦60,000. The bank statement also shows a debit of ₦10,000 for 'Bank Charges' and a credit of ₦5,000 for 'Interest Received'. What is the correct procedure for reconciling the bank statement with the cash book?

Answer Options

Correct Answer A. Debit the bank charges and credit the interest received.
B. Credit the bank charges and debit the interest received.
C. Debit the interest received and credit the bank charges.
D. Ignore the bank charges and interest received.
Correct Answer
A
Correct Option:
Debit the bank charges and credit the interest received.

About This Question

This is Post Utme Coal City University 2019 Accounting Question 32. It is one of the objective questions from the 2019 Post Utme Coal City University Accounting examination.

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