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Difficulty: MediumPreparation of Bank Reconciliation Statement

On 30th June 2026, the adjusted cash book of Emeka Enterprises showed a debit balance of NGN 45,000\text{NGN } 45,000. A comparison with the bank statement revealed unpresented cheques totaling NGN 12,500\text{NGN } 12,500 and uncredited lodgements of NGN 8,200\text{NGN } 8,200. What is the balance as per the bank statement as at 30th June 2026?

Answer: 49300 NGN

Answer

The balance as per the bank statement as at 30th June 2026 is NGN 49,300.
Starting from a favourable (debit) adjusted cash book balance of NGN 45,000, unpresented cheques (NGN 12,500) are added because they represent payments recorded in the cash book that have not yet been processed by the bank. Uncredited lodgements (NGN 8,200) are subtracted because they represent deposits recorded in the cash book that have not yet been credited by the bank. This gives a final bank statement credit balance of NGN 49,300.

Step-by-Step Solution

1
Identify starting balance from the adjusted cash book
Adjusted Cash Book balance (Debit) = NGN 45,000
Reconciliation starts from the corrected cash book figure to arrive at the bank statement balance.
2
Add unpresented cheques
45,000 + 12,500 = NGN 57,500
Unpresented cheques have been debited/subtracted in the cash book but not yet cleared by the bank, so the bank balance is higher by this amount.
3
Deduct uncredited lodgements
57,500 - 8,200 = NGN 49,300
Uncredited lodgements have been added in the cash book but not yet credited on the bank statement, so the bank balance is lower by this amount.

Key Concept

Reconciling the Adjusted Cash Book Balance to the Bank Statement Balance
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Topics

Preparation of Bank Reconciliation Statement

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