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JAMB Principles of Accounts 2010 Question 13

Question 13

Banking and Bank Reconciliation

The cause of discrepancies between the bank statement and the cash book that overstates the cash book is the

  1. A.dividend received
  2. B.uncredited expenses
  3. C.uncredited cheques
  4. D.interest on lodgement.
Show the answer and explanation

Answer: C (uncredited cheques)

Explanation

Cheques paid in are already in the cash book but the bank has not yet credited them, so the cash book shows more.