Calculate the balance as per bank statement at the end of the year?

Given:

Balance as per cash book……………….N20,000
Unpresented cheques……………………N5, 200
Direct credit to the bank………………N1, 000
Direct debit from the bank……………..N1, 000
Credit in the cash book………………..N500

A. N24,700
B. N25,200
C. N26,200
D. N27,700

Correct Answer:

Option A – N24,700

Explanation

Balance per bank is the ending cash balance appearing on a bank statement.

Hence we have; cashbook balance + unpresented cheques + direct bank debit – (direct credit + cashbook credit)

20,000+5200+1000 – (1000+500) = 24,700