Neco Model Questions Vol1 2019 Financial Accounting Question 34
Practice objective / multiple choice question 34 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
The cash book of a company shows a balance of \(\N1,250,000\) at 31 December. The bank statement for the same date shows a balance of \(\N1,300,000\). The following items are identified: outstanding checks total \(\N40,000\); deposits in transit amount to \(\N5,000\); a bank error resulted in a credit of \(\N20,000\) to the company's account; a customer's cheque of \(\N12,000\) was returned NSF and has not yet been recorded in the cash book; the bank charged service fees of \(\N5,000\) which are not yet recorded in the cash book. Prepare a bank reconciliation and state the adjusted cash book balance and the adjusted bank balance.
Answer Options
About This Question
This is Neco Model Questions Vol1 2019 Financial Accounting Question 34. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.