Waec Model Questions Vol1 2023 Financial Accounting Question 7

Practice essay / theory question 7 from the 2023 Waec Model Questions Vol1 Financial Accounting examination. This question covers Bank Reconciliation .

Waec Model Questions Vol1 2023 Financial Accounting Essay / Theory
Topic: Bank Reconciliation
Question 7 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • essay

ABC Ltd. prepared its cash book for the month ended 31 March 2023. The following information is available:

Question Parts

( a )
The cash book shows a balance of ₦ 452,500 as at 31 March 2023.
( b )
The bank statement for the same period shows a balance of ₦ 418,000. The statement also records the following items:
( ) Bank service charges of ₦ 3,200.
( ) Interest earned on the deposit of ₦ 1,500.
( ) A cheque issued for ₦ 27,000 that was returned unpaid because of insufficient funds.
( c )
During March, the following transactions were omitted from the cash book:
( ) A receipt of ₦ 12,800 from a customer that was deposited on 2 April but related to a sale on 30 March.
( ) A payment of ₦ 9,600 made by cheque on 28 March which was not presented to the bank until 4 April.
( d )
Prepare a bank reconciliation statement for ABC Ltd. as at 31 March 2023 showing the adjusted cash book balance and the adjusted bank balance.
( e )
Explain briefly why a bank reconciliation is an essential internal control procedure for a business.

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About This Question

This is Waec Model Questions Vol1 2023 Financial Accounting Question 7. It is one of the essay questions from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

The question covers Bank Reconciliation .

View More Waec Model Questions Vol1 2023 Financial Accounting Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

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