Post Utme Mountain Top University 2018 Accounting Question 37

Practice objective / multiple choice question 37 from the 2018 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2018 Accounting Objective / Multiple Choice
Question 37 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2018 • ACCOUNTING • objective

A company's bank statement shows a balance of ₦50,000, but its cash book shows a balance of ₦60,000. The bank statement also shows a debit of ₦10,000 for 'Bank Charges'. What is the correct explanation for the difference?

Answer Options

Correct Answer A. The bank has charged ₦10,000 for bank charges, which is not reflected in the cash book
B. The cash book has an error of ₦10,000, which is not reflected in the bank statement
C. The bank has credited the company with ₦10,000, which is not reflected in the cash book
D. The cash book has an error of ₦10,000, which is reflected in the bank statement
Correct Answer
A
Correct Option:
The bank has charged ₦10,000 for bank charges, which is not reflected in the cash book

About This Question

This is Post Utme Mountain Top University 2018 Accounting Question 37. It is one of the objective questions from the 2018 Post Utme Mountain Top University Accounting examination.

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