Gce Model Questions Vol1 2018 Financial Accounting Question 30
Practice objective / multiple choice question 30 from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
The cash book of ABC Ltd shows a cash balance of £5,200 and a bank balance of £7,800 at 31 March. The following information is available for reconciliation:\n- Outstanding cheques: £1,350 (three cheques dated 28 Mar, 30 Mar and 31 Mar);\n- Deposits in transit: £2,100 (deposits made on 30 Mar not yet cleared);\n- The bank statement shows a direct debit of £420 for electricity that was omitted from the cash book;\n- A customer's cheque of £560 was recorded in the cash book as £5,600 (extra zero);\n- A bank error: the bank credited £1,200 to the cash book balance instead of £1,020.\nAfter adjusting for all items, what is the corrected cash book balance?
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About This Question
This is Gce Model Questions Vol1 2018 Financial Accounting Question 30. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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