Post Utme Lead City University 2023 Accounting Question 37

Practice objective / multiple choice question 37 from the 2023 Post Utme Lead City University Accounting examination.

Post Utme Lead City University 2023 Accounting Objective / Multiple Choice
Question 37 POST_UTME_LEAD_CITY_UNIVERSITY • 2023 • ACCOUNTING • objective

A company's cash book shows a credit balance of ₦15,000. However, the bank statement shows a debit balance of ₦20,000. The bank reconciliation statement shows that the company has an outstanding cheque of ₦8,000 and a deposit in transit of ₦4,000. What is the correct explanation for the discrepancy?

Answer Options

Correct Answer A. The company has an outstanding cheque of ₦8,000 and a deposit in transit of ₦4,000.
B. The company has an error in its cash book.
C. The bank has an error in its statement.
D. The company has an overdraft facility with the bank.
Correct Answer
A
Correct Option:
The company has an outstanding cheque of ₦8,000 and a deposit in transit of ₦4,000.

About This Question

This is Post Utme Lead City University 2023 Accounting Question 37. It is one of the objective questions from the 2023 Post Utme Lead City University Accounting examination.

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