Neco Model Questions Vol1 2021 Financial Accounting Question 29
Practice objective / multiple choice question 29 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
XYZ Ltd. has a cash‑book balance of \(\text{₦}1,250,000\) on 31 December 2021. The bank statement shows a balance of \(\text{₦}1,380,000\). The following items are identified:\n\n- Deposits in transit: \(\text{₦}45,000\)\n- Outstanding checks: \(\text{₦}30,000\) and \(\text{₦}25,000\)\n- Bank service charge not yet recorded in the cash book: \(\text{₦}5,000\)\n- NSF (non‑sufficient funds) check from a customer that was recorded in the cash book: \(\text{₦}12,000\)\n- Bank error: the bank incorrectly credited \(\text{₦}8,000\) to XYZ Ltd.'s account.\n\nPrepare the bank reconciliation and state the corrected cash‑book balance.
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About This Question
This is Neco Model Questions Vol1 2021 Financial Accounting Question 29. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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