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JAMB Principles of Accounts 2000 Question 3

Question 3

Banking and Bank Reconciliation

In order to make the cash book balance equal to the bank statement, it is usual to add

  1. A.uncredited cheques
  2. B.direct payments by bank
  3. C.bank charges
  4. D.unpresented cheques.
Show the answer and explanation

Answer: D (unpresented cheques.)

Explanation

Unpresented cheques have reduced the cash book but not yet the bank balance, so they are added back to the cash book balance.