Neco Model Questions Vol1 2024 Financial Accounting Question 38

The cash book of ABC Enterprises shows a balance of \(1,250,000\) Naira at 31 March. The bank statement for the same date shows a balance of \(1,300,000\) Naira. The following items are known:\n\n- Deposits in transit: \(80,000\) Naira\n- Outstanding checks: \(45,000\) Naira\n- Bank service charge of \(5,000\) Naira not yet recorded in the cash book\n- Interest earned of \(2,000\) Naira not yet recorded in the cash book\n- A cheque was entered in the cash book as \(3,000\) Naira but the actual amount was \(30,000\) Naira\n- The bank incorrectly debited a customer's deposit of \(20,000\) Naira as a payment (error in favour of the bank)\n- The bank collected a note receivable for \(135,000\) Naira on behalf of the company, which was not yet recorded in the cash book\n\nWhat is the corrected cash book balance after reconciling all items?