The Branch Cash Reconciliation
A small retail bank branch in Ibadan starts the day with a till float of ₦48,000. During the day the teller records: deposits of ₦126,500 and ₦73,250; withdrawals of ₦95,400 and ₦18,900; and a transfer out of ₦40,000. At close, the physical cash counted in the till is ₦93,450. The teller insists the books are right and the count must be wrong. The branch manager must decide whether to sign off the ledger or flag a shortage before the vault is sealed. A shortage over ₦2,000 must be reported the same day.
1. Using the transaction records, determine the expected closing cash balance and the size and direction of any discrepancy.
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Start with the float: ₦48,000.
Add inflows (deposits): 48,000 + 126,500 + 73,250 = ₦247,750.
Subtract outflows (withdrawals and transfer): 95,400 + 18,900 + 40,000 = ₦154,300.
Expected closing balance = 247,750 − 154,300 = ₦93,450.
The physical count is also ₦93,450, so the discrepancy is ₦0. The books and the count agree; no shortage exists.
2. Given your figure, should the manager sign off or flag a shortage, and what does this reveal about the teller's claim?
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The expected and counted balances match exactly, so the manager should sign off the ledger and seal the vault.
The teller's claim that the count must be wrong is itself the error: the records reconcile perfectly. The correct professional response is to confirm the reconciliation rather than escalate a non-existent shortage. A shortage report would only be warranted if the gap exceeded ₦2,000; here it is zero.