Concept:A dishonoured cheque is a cheque deposited into the bank but returned unpaid, so it remains uncredited to the business account.
Explanation:When a customer’s cheque is paid into the bank, it is first recorded in the cash book as a receipt.
If the bank refuses payment, the amount is not credited to the business bank account.
In a bank reconciliation statement, this item is therefore treated together with uncredited cheques.
This treatment is similar to bank charges and standing order payments when the reconciliation starts from the bank statement balance.
Thus, dishonoured cheques are added to uncredited cheques in the reconciliation process.
Answer:B. uncredited cheques