Neco Model Questions Vol1 2021 Financial Accounting Question 32

Practice objective / multiple choice question 32 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Medium Difficulty
Question 32 NECO_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

The cash book of XYZ Ltd shows a balance of ₦850,000 at 30 June. The bank statement for the same date shows a balance of ₦900,000. The following reconciling items are identified: outstanding checks amounting to ₦120,000; deposits in transit of ₦45,000; a bank error where a cheque of ₦30,000 was incorrectly debited to the account; an unpresented cheque of ₦25,000 that has already been recorded in the cash book; and bank interest of 0.5 % on the corrected bank balance, which has not yet been recorded in the cash book. What balance should be shown in the cash book after all adjustments, including the interest?

Answer Options

A. ₦858,275
B. ₦860,275
C. ₦859,775
Correct Answer D. ₦859,275
Correct Answer
D
Correct Option:
₦859,275

About This Question

This is Neco Model Questions Vol1 2021 Financial Accounting Question 32. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Medium .

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