Gce Model Questions Vol1 2021 Financial Accounting Question 25

The cash book of DEF Ltd shows a balance of \(\text{₦}250,000\) as at 31 December 2021. The bank statement for the same date shows a balance of \(\text{₦}260,000\). The following items are known:\n- Outstanding checks: \(\text{₦}15,000\) (two checks of \(\text{₦}7,000\) and \(\text{₦}8,000\)).\n- Deposits in transit: \(\text{₦}9,800\).\n- Bank charge not yet recorded in the cash book: \(\text{₦}1,200\).\n- Interest earned on the bank balance not yet recorded in the cash book: \(\text{₦}2,500\).\n- The bank incorrectly credited a customer's cheque of \(\text{₦}3,500\); the correct amount should have been \(\text{₦}3,200\).\nPrepare a bank reconciliation statement and state the adjusted cash book balance after all necessary adjustments.