Neco Model Questions Vol1 2020 Financial Accounting Question 37

Practice objective / multiple choice question 37 from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2020 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 37 NECO_MODEL_QUESTIONS_VOL1 • 2020 • FINANCIAL_ACCOUNTING • objective

A cash book (with cash and bank columns) shows an opening bank balance of \(N20,000\). During the month the following were recorded: cash sales \(N45,000\), bank deposit \(N30,000\), cash purchases \(N25,000\), cheque payments \(N1,500\) and \(N1,000\) to two suppliers, and a bank service charge of \(N500\) entered only in the bank column. The cash book's closing bank balance is \(N34,500\). The bank statement shows a closing balance of \(N33,800\). The bank statement records a direct debit of \(N1,200\) that was omitted from the cash book. Determine (a) the total amount of unpresented cheques and (b) the corrected cash‑book bank balance after adjusting for the omitted direct debit and the bank error.

Answer Options

A. Unpresented cheques total N1,000; corrected cash‑book bank balance N33,800.
Correct Answer B. Unpresented cheques total N1,000; corrected cash‑book bank balance N32,500.
C. Unpresented cheques total N1,200; corrected cash‑book bank balance N31,800.
D. Unpresented cheques total N500; corrected cash‑book bank balance N33,300.
Correct Answer
B
Correct Option:
Unpresented cheques total N1,000; corrected cash‑book bank balance N32,500.

About This Question

This is Neco Model Questions Vol1 2020 Financial Accounting Question 37. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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