Neco Model Questions Vol1 2024 Financial Accounting Question 45

XYZ Ltd's cash book shows a balance of \(\text{₦}85,000\) on 31 December 2024. The bank statement balance on the same date is \(\text{₦}92,000\). The following items are known: - Deposits in transit: \(\text{₦}7,000\) - Outstanding checks: \(\text{₦}4,200\) and \(\text{₦}4,400\) - A cheque of \(\text{₦}5,600\) was recorded in the cash book but was returned unpaid by the bank and has not been reversed. - Bank service charges of \(\text{₦}1,200\) were not recorded in the cash book. - Bank interest credited to the account of \(\text{₦}800\) was not recorded in the cash book. - The bank made an error: a deposit of \(\text{₦}2,500\) was credited as \(\text{₦}2,700\). Prepare the bank reconciliation and state the corrected cash book balance as of 31 December 2024.