JAMB Accounts Principles of Accounts 2018 Paper

Concept:Bank reconciliation removes timing differences between the cash book balance and the bank statement balance.Explanation:Unpresented cheques are cheques issued by the business but not yet presented for payment at the bank.The business has already recorded them as payments in the cash book, but the bank has not yet paid them.As a result, the bank statement shows a higher balance than the cash book.Therefore, to make the cash book balance equal the bank statement balance, unpresented cheques must be added to the cash book balance.Uncredited cheques are deposits not yet added by the bank, so they are deducted instead.Direct payments by the bank and bank charges are also deducted when updating the cash book.This relationship can be written as:$$\text{Cash book balance} + \text{Unpresented cheques} - \text{Uncredited cheques} = \text{Bank statement balance}$$Answer:D. unpresented cheques