Post Utme Igbinedion University 2019 Accounting Question 21

Practice objective / multiple choice question 21 from the 2019 Post Utme Igbinedion University Accounting examination.

Post Utme Igbinedion University 2019 Accounting Objective / Multiple Choice
Question 21 POST_UTME_IGBINEDION_UNIVERSITY • 2019 • ACCOUNTING • objective

A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit of ₦30,000 for a loan received from a supplier. However, the cash book does not show this transaction. What is the correct explanation for the difference between the cash book balance and the bank statement balance?

Answer Options

A. The company has deposited ₦30,000 into the bank but has not recorded it in the cash book.
Correct Answer B. The company has received a loan of ₦30,000 from a supplier, but the cash book has not been updated.
C. The company has written a cheque for ₦30,000, but the bank has not yet credited the account.
D. The company has made an error in recording a transaction in the cash book.
Correct Answer
B
Correct Option:
The company has received a loan of ₦30,000 from a supplier, but the cash book has not been updated.

About This Question

This is Post Utme Igbinedion University 2019 Accounting Question 21. It is one of the objective questions from the 2019 Post Utme Igbinedion University Accounting examination.

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