Question on: JAMB Accounting - 2017
You add the following when starting with the balance as per cash book when preparing the bank reconciliation statement except
A
Unpresented
B
Dividend
C
Uncredited cheque
D
credit transfer
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Correct Option: C
When preparing a bank reconciliation statement starting with the balance as per the cash book, you add items that the bank has credited to the account but the business has not yet recorded. This is because the cash book balance needs to be adjusted to reflect the bank's actual balance.
- Uncredited cheque: A cheque that the company has recorded in its cash book as a payment but the bank has not yet processed because it has not been presented for payment. This means that the bank balance is higher than the cash book balance. You would add this to the cash book balance to reconcile.
- Dividend: Dividends received by the company are directly credited to the bank account and are not recorded in the cash book until the company is notified of the credit. The cash book balance will be lower.
- **Credit
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