Neco Model Questions Vol1 2022 Financial Accounting Question 32
Practice objective / multiple choice question 32 from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
A cash book shows a balance of \(\,\text{₦}152,000\). The bank statement balance is \(\,\text{₦}150,000\). Deposits in transit amount to \(\,\text{₦}12,500\) and outstanding checks total \(\,\text{₦}9,800\). Bank service charges of \(\,\text{₦}500\) and interest earned of \(\,\text{₦}300\) appear on the statement but are not yet recorded in the cash book. A cheque was recorded in the cash book as \(\,\text{₦}X\) but the actual amount of the cheque is \(\,\text{₦}2,000\). Determine the amount \(X\) (the overstated amount) so that after reconciliation the cash book balance agrees with the bank statement balance.
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About This Question
This is Neco Model Questions Vol1 2022 Financial Accounting Question 32. It is one of the objective questions from the 2022 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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