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JAMB Principles of Accounts 1997 Question 12

Question 12

Banking and Bank Reconciliation

When a sum of money appears on the credit side of the cash book, but not on the debit side of the bank statement, the sum is regarded as

  1. A.uncredited cheques
  2. B.dishonoured cheques
  3. C.direct remittance to the bank
  4. D.unpresented cheques.
Show the answer and explanation

Answer: D (unpresented cheques.)

Explanation

A cheque paid out (credit in cash book) but not yet charged by the bank is an unpresented cheque.