Neco 2018 Financial Accounting Question 35

A business keeps a double‑column cash book. At month‑end the cash book shows a cash balance of ₦85,000 and a bank balance of ₦208,000. The bank statement for the same date shows a balance of ₦215,000. The following items are identified: 1. A cheque for ₦12,000 issued to a supplier was recorded in the cash book but has not yet been presented to the bank. 2. Bank charges of ₦1,500 appear on the bank statement but were omitted from the cash book. 3. A deposit of ₦5,000 made on the last day of the month was recorded in the cash book but was not processed by the bank until the following month. Prepare the bank reconciliation and state the corrected bank balance that should appear in the cash book after all adjustments.