Neco Model Questions Vol1 2025 Financial Accounting Question 13

A company's cash book shows a balance of \(\text{₦478,000}\) on 31 December 2025. The bank statement for the same date shows a balance of \(\text{₦480,000}\). The following items are identified: - Outstanding checks: \(\text{₦15,000}\) and \(\text{₦5,000}\). - Deposits in transit: \(\text{₦10,000}\) and \(\text{₦5,000}\). - The bank erroneously credited the account with \(\text{₦2,000}\); the same amount was recorded in the cash book. - Bank interest of \(\text{₦1,000}\) appears on the statement but is not in the cash book. - Bank service charges of \(\text{₦500}\) appear on the statement but are not in the cash book. - A customer's cheque of \(\text{₦3,000}\) was returned NSF; it had been recorded as a receipt in the cash book. Prepare the bank reconciliation and state the corrected cash book balance.