When a sum of money appears on the credit side of the cash book, but not on the debit side of the bank statement, the sum is regarded as ____
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Correct Answer: Option D
Explanation:
When a cheque is issued by a business, it is recorded in the credit side of the cash book (because cash or bank balance is reducing). However, if the recipient has not yet presented the cheque to the bank for payment, it won't appear on the bank statement.
Such a cheque is known as an unpresented cheque - it has been recorded by the business but not yet cleared by the bank.
When a cheque is issued by a business, it is recorded in the credit side of the cash book (because cash or bank balance is reducing). However, if the recipient has not yet presented the cheque to the bank for payment, it won't appear on the bank statement.
Such a cheque is known as an unpresented cheque - it has been recorded by the business but not yet cleared by the bank.