Gce Model Questions Vol1 2022 Financial Accounting Question 35

The cash book of XYZ Ltd shows a balance of \(\text{₦}152,500\) at 30 June 2022. The bank statement balance at the same date is \(\text{₦}150,000\). The following items are identified: - Outstanding checks totalling \(\text{₦}5,200\). - Deposits in transit totalling \(\text{₦}3,800\). - Bank service charges of \(\text{₦}150\). - Interest earned of \(\text{₦}250\). - An unidentified bank error. After adjusting the bank balance for the outstanding checks and deposits in transit, and adjusting the cash book for the service charges and interest, the two balances still differ by \(\text{₦}4,000\), with the cash book balance higher. What is the amount of the bank error that should be recorded in the cash book to reconcile the balances?