Neco 2022 Financial Accounting Question 44

Practice objective / multiple choice question 44 from the 2022 Neco Financial Accounting examination.

Neco 2022 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 44 NECO • 2022 • FINANCIAL_ACCOUNTING • objective

A cash book shows an opening balance of ₦500,000. During the month the following cash transactions occurred: cash sales \(300,000\), collections from debtors \(150,000\), cash purchases \(120,000\), payments to creditors \(80,000\), and rent paid \(50,000\). The bank statement at month‑end shows a closing balance of ₦720,000. The bank reconciliation reveals unpresented cheques totalling \(30,000\) and deposits in transit totalling \(20,000\). Determine the cash book closing balance and the discrepancy, if any, after reconciling with the bank statement.

Answer Options

A. Cash book closing balance ₦680,000; discrepancy ₦30,000 (cash book lower)
B. Cash book closing balance ₦700,000; discrepancy ₦10,000 (cash book higher)
C. Cash book closing balance ₦720,000; discrepancy ₦20,000 (cash book lower)
Correct Answer D. Cash book closing balance ₦700,000; discrepancy ₦10,000 (cash book lower)
Correct Answer
D
Correct Option:
Cash book closing balance ₦700,000; discrepancy ₦10,000 (cash book lower)

About This Question

This is Neco 2022 Financial Accounting Question 44. It is one of the objective questions from the 2022 Neco Financial Accounting examination.

Difficulty level: Medium .

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