Which item would require an entry in the cash book before preparing a bank reconciliation statement?

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Question

Which item would require an entry in the cash book before preparing a bank reconciliation statement?

Accepted Answer

A dishonoured cheque received from a customer — Award 1 mark for identifying that a dishonoured cheque must be entered in the cash book to update it. The original receipt was recorded but now needs to be reversed as the cheque was not honoured. B is incorrect — unpresented cheques are already in the cash book and appear on the bank reconciliation statement. D is incorrect — uncredited deposits are already in the cash book and appear on the bank reconciliation statement. A is incorrect — this describes the same timing difference as an uncredited deposit.

Answer

An unpresented cheque

Answer

A cheque not yet entered in the bank statement

Answer

A dishonoured cheque received from a customer

Answer

An uncredited deposit

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