WAEC Accounting 2011 Paper

Concept:A debit balance on a bank statement means the account is overdrawn, so it is treated as a negative amount. An uncredited cheque is a deposit not yet recorded by the bank, so it is added to the statement balance.Explanation:Start with the bank statement balance as a negative value:$-\text{Le }475$Add the uncredited cheque of Le 800:$+\text{Le }800$Calculate the new balance:$-\text{Le }475 + \text{Le }800 = +\text{Le }325$Since the result is positive, the new balance is a favourable balance of Le 325, not an overdraft.Answer:Le 325