Fidelity Bank's statement sent to Kola Enterprises shows a balance of ₦930,000 (credit) at 30 June 2024. The following are noted: a cheque for ₦67,000 drawn by Kola Enterprises was incorrectly debited by the bank to Kola Enterprises' account instead of another customer's account; deposits in transit amount to ₦112,000; unpresented cheques total ₦145,000. What balance should appear on the bank statement side of the reconciliation statement?

The bank statement balance of ₦930,000 must be adjusted for timing differences and bank errors to arrive at the true balance. The bank error (₦67,000 wrongly debited) must be added back because the debit should not have been on Kola's account, giving ₦930,000 + ₦67,000 = ₦997,000. Then add deposits in transit ₦112,000 and deduct unpresented cheques ₦145,000: ₦997,000 + ₦112,000 − ₦145,000 = ₦964,000. This represents the adjusted bank statement balance that should equal the adjusted cash book balance.