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CSEET · Fundamentals of Accounting · Bank Reconciliation Statement

Which of the following items requires an entry in the cash book (adjusted cash book) rather than appearing only as a reconciling item in the BRS?

Interest credited by the bank needs an entry in the cash book. The firm has not recorded it, so the cash book balance is incomplete. Cheques issued or deposited but not yet cleared are timing differences already recorded in the cash book.

  1. ACheques issued but not yet presented for payment
  2. BCheques deposited but not yet credited by the bank
  3. CInterest credited by the bank on the savings balanceCorrect
  4. DCheques deposited and credited in the next month's statement

Explanation

Interest credited by the bank is not yet in the cash book, so it must be entered there to correct the cash book. The other items are timing differences already recorded in the cash book and will be settled by the bank itself.

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