Neco 2020 Financial Accounting Question 26

A cash book for the month shows an opening bank balance of \(100{,}000\). During the month the following cash transactions were recorded in the bank column: cash sales \(45{,}000\), loan received \(20{,}000\), rent paid \(12{,}000\), salaries paid \(18{,}000\), purchase of inventory paid \(25{,}000\), bank charges \(2{,}000\). The cash book therefore shows a closing bank balance of \(108{,}000\). The bank statement for the same period shows a closing balance of \(95{,}000\). It is known that there are unpresented cheques totalling \(7{,}000\), deposits in transit totalling \(5{,}000\), and a bank error that incorrectly credited \(2{,}000\) to the account. Determine the correct cash book balance after making the necessary adjustments.