Neco 2021 Financial Accounting Question 19

The combined cash‑and‑bank book for March shows: opening cash balance \(\text{₦}45,000\), opening bank balance \(\text{₦}120,000\); cash receipts \(\text{₦}85,000\), cash payments \(\text{₦}70,000\); bank receipts \(\text{₦}150,000\), bank payments \(\text{₦}165,000\). The cash‑book closing balances are cash \(\text{₦}60,000\) and bank \(\text{₦}105,000\). The bank statement shows a closing balance of \(\text{₦}98,000\) and lists an unpresented cheque of \(\text{₦}7,000\) and a bank service charge of \(\text{₦}500\) not yet recorded in the cash‑book. After adjusting for these items, determine the corrected cash‑book balances and state whether any cash needs to be transferred between cash and bank to reconcile the cash‑book with the bank statement.