JAMB - Accounts Principles Of Accounts (1997 - No. 12)
An examination of the cash book on 3rd August 1993 showed a different balance from the bank statement of 31st July, 1993 which read N722. Uncredited cheques were Bimpe N40; Wale N60 while unpresented cheques were; Usman N20, Kalu N32 and Musa N70. What is the cash book balance after the reconciliation?
N700
N770
N800
N822
Explanation
Bank statement balance (31st July 1993): N722
Uncredited cheques (cheques not yet deposited): Bimpe: N40, Wale: N60
Unpresented cheques (cheques issued but not yet cleared): Usman: N20, Kalu: N32, and Musa: N70
Total Uncredited cheques = 40 + 60 = N100
Total Unrepresented cheque = 20 + 32 + 70 = N122
Adjusted Balance = Bank Statement Balance + Total Uncredited − Total Unpresented
Adjusted Balance = 722 + 100 - 122 = N700
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