Given:Balance as per cash book...................₦20,000 Unpresented cheques........................₦5, 200 Direct credit to the bank..................₦1, 0...

The balance as per cash book is ₦20,000. Unpresented cheques are ₦5,200, meaning they have been recorded in the cash book but have not yet cleared the bank. Therefore, they must be deducted from the balance as per cash book to get the adjusted cash book balance, which is: Adjusted cash book balance = Balance as per cash book - Unpresented cheques = ₦20,000 - ₦5,200 = ₦14,800 There is a direct credit of ₦1,000 to the bank account, which means the bank owes the business ₦1,000. Similarly, there is a direct debit of ₦1,000 from the bank account, which means the business owes the bank ₦1,000. These two transactions cancel each other out, so they do not affect the adjusted cash book balance. Finally, there is a credit of ₦500 in the cash book, which means that the cash book balance needs to be increased by ₦500. Therefore, the adjusted cash book balance plus the credit in the cash book is: Adjusted cash book balance + Credit in the cash book = ₦14,800 + ₦500 = ₦15,300 This adjusted cash book balance plus credit in the cash book represents the balance as per bank statement. Therefore, the balance as per bank statement at the end of the year is ₦15,300. Answer (₦27,700) is incorrect.