WAEC Accounting 2019 Objective — Question 23

Question 23 of 50 from the West African Examinations Council (WAEC) Accounting 2019 Objective paper, with the correct answer and a full explanation.

When bank charges are deducted from a customer's account, the balance on the bank statement would be

A. more than the cash book balance
B. less than the cash book balanceCorrect
C. equal to the cash book balance
D. added to the cash book balance

Explanation

Bank charges is a deduction against the customer's balance in the bank. But this charge, usually unrecorded in the cash book, thus, the bank balance will be lowered by the amount, making it less than the cash book balance.

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