Control Accounts and Bank Reconciliation Practice Questions — JAMB UTME — Page 4

Question 61Question →

On 31st October 2025, the Cash Book of Tunde & Sons Enterprises showed a bank overdraft balance of ₦50,000. Upon comparing the Cash Book with the Bank Statement, the following items were discovered:
- Bank charges of ₦3,500 had not been recorded in the Cash Book.
- A customer made a direct deposit of ₦12,000 into the bank account, which was omitted from the Cash Book.
- A standing order for insurance of ₦6,500 was paid by the bank but not recorded in the Cash Book.
- Unpresented cheques amounted to ₦18,000, while uncredited lodgements totaled ₦22,000.

What is the corrected (adjusted) cash book balance as at 31st October 2025?

Overdraft balance of ₦48,000

Overdraft balance of ₦52,000

Overdraft balance of ₦59,000

Debit balance of ₦48,000

Show answer & explanation

Answer: Overdraft balance of ₦48,000

Answer

Overdraft balance of ₦48,000

The adjusted cash book is prepared by posting items omitted from the cash book (unrecorded bank charges, standing orders, and direct deposits) to update the balance before preparing the bank reconciliation statement. Starting with a credit overdraft balance of ₦50,000: adding the direct deposit of ₦12,000 and deducting bank charges of ₦3,500 and the standing order payment of ₦6,500 leaves a net credit (overdraft) balance of ₦48,000. Unpresented cheques and uncredited lodgements are timing differences that appear only in the bank reconciliation statement.

Step-by-Step Solution

1

Identify the initial cash book balance and its nature.

Initial cash book balance is a credit balance (overdraft) of ₦50,000.

An overdraft represents a credit balance in the cash book (a liability).

2

Filter for items that belong in the Adjusted Cash Book versus the Bank Reconciliation Statement.

Bank charges (₦3,500), direct deposit (₦12,000), and standing order (₦6,500) go into the Adjusted Cash Book. Unpresented cheques (₦18,000) and uncredited lodgements (₦22,000) are timing differences that go to the Bank Reconciliation Statement.

Only items omitted from or incorrectly recorded in the Cash Book are adjusted in the Cash Book prior to bank reconciliation.

3

Calculate the updated cash book balance.

Adjusted balance = -₦50,000 (overdraft) + ₦12,000 (direct deposit) - ₦3,500 (bank charges) - ₦6,500 (standing order) = -₦48,000.

Direct deposits increase the bank balance (debit cash book), while bank charges and standing order payments decrease it (credit cash book).

Key Concept

Adjusted Cash Book Preparation

Question 62Question →

The Cash Book of Biobaku Traders showed an unadjusted overdraft balance of $\text{NGN } 18,100$ on 31st May 2026. On comparing the Cash Book with the Bank Statement, the following discrepancies were identified:

- Bank charges of $\text{NGN } 1,500$ and a standing order payment of $\text{NGN } 3,200$ were recorded only in the Bank Statement.
- A cheque for $\text{NGN } 4,000$ deposited into the bank was returned unpaid (dishonoured).
- Unpresented cheques totaled $\text{NGN } 8,600$ .
- Uncredited lodgements totaled $\text{NGN } 11,400$ .

What is the balance as per the Bank Statement on 31st May 2026?

Overdraft of

\text{NGN } 29,600

Overdraft of

\text{NGN } 24,000

Overdraft of

\text{NGN } 25,600

Overdraft of

\text{NGN } 12,200

Show answer & explanation

Answer: Overdraft of $\text{NGN } 29,600$

Answer

Overdraft of

\text{NGN } 29,600

The correct answer is derived by first adjusting the cash book for items not previously entered (bank charges, standing order, dishonoured cheque), increasing the overdraft from

\text{NGN } 18,100

to

\text{NGN } 26,800

. Reconciling to the bank statement balance, unpresented cheques of

\text{NGN } 8,600

are added and uncredited lodgements of

\text{NGN } 11,400

are subtracted, giving a final bank statement overdraft of

\text{NGN } 29,600

.

Step-by-Step Solution

1

Calculate the Adjusted Cash Book Balance

Adjusted Cash Book Overdraft =

\text{NGN } 26,800

Bank charges, standing orders, and dishonoured cheques must be debited/deducted from cash book balance (which increases an overdraft). Initial Overdraft (

-\text{NGN } 18,100

)

-

Bank charges (

\text{NGN } 1,500

)

-

Standing order (

\text{NGN } 3,200

)

-

Dishonoured cheque (

\text{NGN } 4,000

) =

-\text{NGN } 26,800

.

2

Prepare the Bank Reconciliation Statement starting from Adjusted Cash Book Overdraft

Bank Statement Balance = Overdraft of

\text{NGN } 29,600

To reconcile from Cash Book Overdraft (

-\text{NGN } 26,800

) to Bank Statement Balance: Add Unpresented Cheques (

+\text{NGN } 8,600

) and Deduct Uncredited Lodgements (

-\text{NGN } 11,400

). Total =

-\text{NGN } 26,800 + \text{NGN } 8,600 - \text{NGN } 11,400 = -\text{NGN } 29,600

.

Key Concept

Two-step Bank Reconciliation with Overdraft Balances

Question 63Question →

Before reconciliation, the Sales Ledger Control Account of Okafor Enterprises showed a debit balance of $\text{₦}195,000$ . A detailed investigation revealed the following errors:

1. The total of the sales journal was understated by $\text{₦}15,000$ .
2. A dishonoured cheque of $\text{₦}8,000$ received from a customer had been mistakenly credited to the Sales Ledger Control Account.

What is the correct balance of the Sales Ledger Control Account after adjusting for these errors?

\text{₦}226,000

\text{₦}218,000

\text{₦}202,000

\text{₦}194,000

Show answer & explanation

Answer: $\text{₦}226,000$

Answer

The correct balance of the Sales Ledger Control Account is

\text{₦}226,000

.

The Sales Ledger Control Account carries a debit balance representing trade debtors. Understated sales of

\text{₦}15,000

must be debited to increase the total debtors balance. When a dishonoured cheque of

\text{₦}8,000

is erroneously credited, the debit side is short by

\text{₦}16,000

(

\text{₦}8,000

to remove the credit entry plus

\text{₦}8,000

for the proper debit entry). Adding

\text{₦}15,000

and

\text{₦}16,000

to the initial balance of

\text{₦}195,000

gives

\text{₦}226,000

.

Step-by-Step Solution

1

Identify the unadjusted debit balance

Unadjusted balance =

\text{₦}195,000

(debit)

The initial ledger balance before error correction.

2

Adjust for the understated sales journal total

Add

\text{₦}15,000

to the debit side

Credit sales increase debtors, so an understatement in the sales journal requires an additional debit entry.

3

Correct the misposted dishonoured cheque

Add

2 \times \text{₦}8,000 = \text{₦}16,000

to the debit side

A dishonoured cheque reinstates a debt and must be debited. Since it was erroneously credited, adding

\text{₦}16,000

cancels the

\text{₦}8,000

credit and applies the correct

\text{₦}8,000

debit.

4

Calculate the final corrected balance

\text{₦}195,000 + \text{₦}15,000 + \text{₦}16,000 = \text{₦}226,000

Summing all required debit adjustments yields the adjusted control account balance.

Key Concept

Correcting errors on control accounts requires doubling the adjustment amount when an item has been posted to the wrong side of the ledger.

Question 64Question →

On 31st October 2026, the Cash Book of Chidiebere Enterprises showed an unadjusted debit balance of $\text{NGN } 54,200$ . Upon comparing the Cash Book with the bank statement, the following items were identified: a direct credit from a customer of $\text{NGN } 11,500$ , bank charges of $\text{NGN } 2,800$ , a standing order payment for insurance of $\text{NGN } 6,400$ , and a customer's dishonoured cheque of $\text{NGN } 4,500$ (none of which were previously recorded in the Cash Book). Furthermore, unpresented cheques amounted to $\text{NGN } 18,300$ and uncredited lodgements totaled $\text{NGN } 14,100$ . What is the balance as per the bank statement on 31st October 2026 in NGN?

Show answer & explanation

Answer: 56200

Answer

The balance as per the bank statement on 31st October 2026 is NGN 56,200.

The adjusted cash book balance is calculated by starting with NGN 54,200, adding the direct credit of NGN 11,500, and deducting bank charges of NGN 2,800, standing order of NGN 6,400, and dishonoured cheque of NGN 4,500, which yields an adjusted cash book balance of NGN 52,000. Reconciling to the bank statement requires adding unpresented cheques of NGN 18,300 and subtracting uncredited lodgements of NGN 14,100, resulting in a final bank statement balance of NGN 56,200.

Step-by-Step Solution

1

Calculate the adjusted balance of the Cash Book

Adjusted Cash Book Balance = NGN 52,000

Direct credits increase the cash book balance, while bank charges, standing orders, and dishonoured cheques decrease the cash book balance.

2

Reconcile the adjusted cash book balance to arrive at the bank statement balance

Bank Statement Balance = NGN 56,200

Adding unpresented cheques (cheques drawn but not yet presented at bank) and subtracting uncredited lodgements (cheques deposited but not yet credited by bank) converts the adjusted cash book balance to the balance per bank statement.

Key Concept

Preparation of Adjusted Cash Book and Bank Reconciliation Statement

Question 65Question →

The bank column of Chukwuma Ltd's Cash Book showed a debit balance of $\text{NGN } 45,000$ on 31 October 2025. Upon receiving the bank statement, the accountant discovered that a standing order payment of $\text{NGN } 4,500$ for insurance and bank charges of $\text{NGN } 1,200$ were listed only on the bank statement. Additionally, uncredited lodgements of $\text{NGN } 8,000$ and unpresented cheques of $\text{NGN } 6,200$ were outstanding. What is the corrected Cash Book balance prior to preparing the bank reconciliation statement?

\text{NGN } 39,300

\text{NGN } 37,500

\text{NGN } 50,700

\text{NGN } 43,800

Show answer & explanation

Answer: $\text{NGN } 39,300$

Answer

\text{NGN } 39,300

To arrive at the corrected Cash Book balance, only unrecorded bank transactions reflected on the bank statement need to be posted into the Cash Book. Subtracting the standing order of

\text{NGN } 4,500

and bank charges of

\text{NGN } 1,200

from the unadjusted balance of

\text{NGN } 45,000

yields

\text{NGN } 39,300

. Timing differences such as uncredited lodgements and unpresented cheques are handled separately in the bank reconciliation statement.

Step-by-Step Solution

1

Identify items requiring Cash Book adjustment

Standing order (

\text{NGN } 4,500

) and bank charges (

\text{NGN } 1,200

) are unrecorded in the Cash Book.

Direct items on the bank statement not yet entered in the Cash Book must be adjusted in the Cash Book before reconciliation.

2

Identify timing items for the reconciliation statement

Uncredited lodgements (

\text{NGN } 8,000

) and unpresented cheques (

\text{NGN } 6,200

) are timing differences.

These items are already correctly recorded in the Cash Book and will appear on the Bank Reconciliation Statement rather than the adjusted Cash Book.

3

Calculate the corrected Cash Book balance

\text{NGN } 45,000 - \text{NGN } 4,500 - \text{NGN } 1,200 = \text{NGN } 39,300

Deduct unrecorded payments/charges from the initial debit balance.

Key Concept

Adjusted Cash Book Preparation

Estimated Time:1m 30s

Question 66Question →

The adjusted cash book of Folake Trading Enterprise showed an overdraft balance of $\text{NGN } 14,800$ as at 31st July 2026. On comparing the adjusted cash book with the bank statement, the following reconciling items were identified:

- Cheques issued to suppliers but not yet presented for payment: $\text{NGN } 6,200$
- Cheques paid into the bank but not yet credited by the bank: $\text{NGN } 4,500$

What is the balance as per the bank statement as at 31st July 2026?

Overdraft of

\text{NGN } 16,500

Overdraft of

\text{NGN } 13,100

Overdraft of

\text{NGN } 4,100

Overdraft of

\text{NGN } 25,500

Show answer & explanation

Answer: Overdraft of $\text{NGN } 13,100$

Answer

Overdraft of

\text{NGN } 13,100

Starting with an adjusted cash book overdraft of

-\text{NGN } 14,800

, unpresented cheques of

\text{NGN } 6,200

are added (reducing the overdraft to

-\text{NGN } 8,600

) and uncredited lodgements of

\text{NGN } 4,500

are deducted, yielding a final bank statement overdraft balance of

\text{NGN } 13,100

.

Step-by-Step Solution

1

Identify the starting balance and nature of the cash book balance

Adjusted Cash Book Balance =

-\text{NGN } 14,800

(overdraft)

An overdraft in the cash book represents a negative/credit balance.

2

Add unpresented cheques to the cash book balance

-\text{NGN } 14,800 + \text{NGN } 6,200 = -\text{NGN } 8,600

Unpresented cheques have been deducted in the cash book but not yet by the bank, so they are added back when moving from cash book to bank statement balance.

3

Deduct uncredited cheques from the result

-\text{NGN } 8,600 - \text{NGN } 4,500 = -\text{NGN } 13,100

Uncredited cheques have been added in the cash book but not yet by the bank, so they are deducted when moving from cash book to bank statement balance.

Key Concept

Reconciliation from Adjusted Cash Book to Bank Statement

Control Accounts and Bank Reconciliation

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Common Mistakes

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Common Mistakes

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Common Mistakes

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Common Mistakes

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