Gce Model Questions Vol1 2017 Financial Accounting Question 19

Practice objective / multiple choice question 19 from the 2017 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2017 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 19 GCE_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • objective

The cash book for a company shows an opening bank balance of \(500{,}000\) ₦. During the month the following cash transactions occurred:\n- Receipts: cash sales \(300{,}000\) ₦, loan received \(150{,}000\) ₦, interest received \(5{,}000\) ₦.\n- Payments: rent \(80{,}000\) ₦, supplier \(120{,}000\) ₦, salaries \(70{,}000\) ₦, electricity \(15{,}000\) ₦.\nThe bank statement at month‑end shows a closing balance of \(735{,}000\) ₦. However, there are outstanding checks totalling \(25{,}000\) ₦ and deposits in transit of \(10{,}000\) ₦. Calculate (a) the cash book closing balance, (b) the adjusted bank balance after reconciliation, and (c) the difference between the cash book balance and the adjusted bank balance.

Answer Options

A. -60000
Correct Answer B. -50000
C. -45000
D. -55000
Correct Answer
B
Correct Option:
-50000

About This Question

This is Gce Model Questions Vol1 2017 Financial Accounting Question 19. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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