Gce Model Questions Vol1 2021 Financial Accounting Question 30

Practice objective / multiple choice question 30 from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 30 GCE_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

The cash book of a business shows a balance of £12,340 on 31 March. The bank statement for the same date shows a balance of £13,560. The following items are identified: (i) Outstanding checks - three checks of £400 each, one of which has been entered twice in the cash book; (ii) Deposits in transit - £800; (iii) Bank service fee not recorded in the cash book - £45; (iv) Bank error - the bank credited £250 to the account by mistake; (v) A customer's cheque of £600 was returned unpaid but was recorded in the cash book as received. Prepare the bank reconciliation and state the corrected cash‑book balance after all necessary adjustments.

Answer Options

Correct Answer A. Corrected cash‑book balance £12,095
B. Corrected cash‑book balance £12,495
C. Corrected cash‑book balance £11,845
D. Corrected cash‑book balance £12,140
Correct Answer
A
Correct Option:
Corrected cash‑book balance £12,095

About This Question

This is Gce Model Questions Vol1 2021 Financial Accounting Question 30. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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