JAMB - Accounts Principles Of Accounts (2025 - No. 43)
In bank reconciliation, when a cash book shows a credit balance, uncredited cheques are:
I. deducted from the cash book balance
II. added to the bank statement balance
III. added to the cash book balance
I. deducted from the cash book balance
II. added to the bank statement balance
III. added to the cash book balance
I and II only
III only
II and III only
I, II, and III
Explanation
In bank reconciliation, a credit balance in the cash book means the bank owes the business. Uncredited cheques—those issued but not yet presented to the bank—are deducted from the cash book balance.
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