Neco 2025 Financial Accounting Question 32

Practice objective / multiple choice question 32 from the 2025 Neco Financial Accounting examination.

Neco 2025 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 32 NECO • 2025 • FINANCIAL_ACCOUNTING • objective

The cash book shows a balance of ₦120,000 at 30 September. The bank statement shows a closing balance of ₦123,300. Outstanding checks total ₦8,000 and deposits in transit total ₦5,200. The bank has charged a service fee of ₦300 and a customer's cheque of ₦1,200 was returned NSF, both not yet recorded in the cash book. Additionally, the bank mistakenly credited the company's account with ₦2,000 that belongs to another company. Determine the corrected cash‑book balance after reconciliation and the amount that must be adjusted for the bank error.

Answer Options

A. Corrected cash‑book balance = ₦118,500; bank error to be adjusted = ₦2,000 (added to the bank side).
B. Corrected cash‑book balance = ₦117,300; bank error to be adjusted = ₦2,000 (deducted from the bank side).
Correct Answer C. Corrected cash‑book balance = ₦118,500; bank error to be adjusted = ₦2,000 (deducted from the bank side).
D. Corrected cash‑book balance = ₦119,500; bank error to be adjusted = ₦2,000 (deducted from the bank side).
Correct Answer
C
Correct Option:
Corrected cash‑book balance = ₦118,500; bank error to be adjusted = ₦2,000 (deducted from the bank side).

About This Question

This is Neco 2025 Financial Accounting Question 32. It is one of the objective questions from the 2025 Neco Financial Accounting examination.

Difficulty level: Medium .

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