Post Utme Unilorin 2024 Accounting Question 6

Practice objective / multiple choice question 6 from the 2024 Post Utme Unilorin Accounting examination.

Post Utme Unilorin 2024 Accounting Objective / Multiple Choice
Question 6 POST_UTME_UNILORIN • 2024 • ACCOUNTING • objective

A company has a cash book account with a balance of ₦15,000. The bank statement shows a balance of ₦18,000. The company's cash book shows a debit of ₦2,000 for a bank charge. The bank statement shows a credit of ₦1,500 for a bank interest. What is the correct explanation for the difference in the cash book and bank statement balances?

Answer Options

A. The bank charge is not recorded in the cash book.
B. The bank interest is not recorded in the cash book.
Correct Answer C. The cash book balance includes a debit for a bank charge that is not recorded in the bank statement.
D. The bank statement balance includes a credit for a bank interest that is not recorded in the cash book.
Correct Answer
C
Correct Option:
The cash book balance includes a debit for a bank charge that is not recorded in the bank statement.

About This Question

This is Post Utme Unilorin 2024 Accounting Question 6. It is one of the objective questions from the 2024 Post Utme Unilorin Accounting examination.

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