Neco 2020 Financial Accounting Question 21

Practice objective / multiple choice question 21 from the 2020 Neco Financial Accounting examination.

Neco 2020 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 21 NECO • 2020 • FINANCIAL_ACCOUNTING • objective

During the month the cash book shows an opening balance of ₦12,000. Receipts recorded are cash sales of ₦45,000, a loan of ₦10,000 and a customer payment of ₦8,000. Payments recorded are rent of ₦15,000, salaries of ₦20,000, purchase of inventory of ₦12,000 and a bank service charge of ₦500 (which appears only on the bank statement). The cash‑book balance at month end is recorded as ₦27,500. The bank statement shows a balance of ₦30,200. Outstanding checks amount to ₦3,200 and deposits in transit amount to ₦2,500. A cheque received from a customer for ₦4,000 was later dishonoured and appears as a deduction on the bank statement but was recorded in the cash book as a receipt. Assuming all other entries are correct, what amount of cash receipt was omitted from the cash book?

Answer Options

Correct Answer A. ₦7,400
B. ₦6,400
C. ₦8,400
D. ₦7,000
Correct Answer
A
Correct Option:
₦7,400

About This Question

This is Neco 2020 Financial Accounting Question 21. It is one of the objective questions from the 2020 Neco Financial Accounting examination.

Difficulty level: Medium .

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