passwella.
Menu

JAMB Principles of Accounts 2003 Question 1

Question 1

Banking and Bank Reconciliation

Which of the following is used to update the cash book in bank reconciliation?

  1. A.Interest received and unpresented cheques
  2. B.Commission and debit note
  3. C.Unpresented cheques and direct credit
  4. D.Interest received and direct credit
Show the answer and explanation

Answer: D (Interest received and direct credit)

Explanation

The cash book is updated with items the bank has already recorded but the business has not, such as interest received and direct credits. Unpresented cheques are already in the cash book.