JAMB Accounts Principles of Accounts 2023 Paper

Concept:Bank reconciliation adjusts the cash book balance by considering cheques that have not yet cleared in the bank to determine the bank statement balance.Explanation:Start with the balance as per cash book, which is $\text{₦}5,467$.Add unpresented cheques of $\text{₦}19,404$.These are cheques already issued by the business but not yet presented for payment, so the bank has not yet deducted them. Therefore, the bank balance is higher.Subtract uncredited cheques of $\text{₦}4,410$.These are cheques received and recorded in the cash book but not yet cleared or credited by the bank. Therefore, the bank balance is lower.Thus, the bank statement balance is calculated as:$$\text{Balance as per bank statement} = \text{₦}5,467 + \text{₦}19,404 - \text{₦}4,410 = \text{₦}20,461.$$Answer:The correct answer is $\text{₦}20,461$.Option A is correct.