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1.Unpresentation cheque : These are cheques drawn or issued out in favour of somebody but have not been drawn from the bank as at the time of preparation of bank statement. It can also be cheque that are issued to customer which have not presented them to bank for payment due to delay. The firm had credited the cash book with the cheque issue out.
Definition of Outstanding Check. An outstanding check is a check that a company has issued and recorded in its general ledger accounts, but the check has not yet cleared the bank account on which it is drawn. This means that the bank balance will be greater than the company’s true amount of cash.
Apr 24, 2020 · Uncredited cheques: These are cheques received by the business and lodged (or deposited) in the bank but have not been credited in the Bank Statement. Uncredited cheques will be found on the debit side of the Cash Book but not on the credit side of the Bank Statement
Apr 13, 2024 · An uncleared check is a that has not yet been paid by the bank on which it was drawn. Such a check has already been recorded by the and presented to its bank. There is a clearing cycle that must then be completed that lasts several days. During the clearing cycle, the payee's bank presents the check to the payer's bank, which then forwards the ...
Unpresented Cheques (also known as Outstanding Cheques)and Uncollected Cheques(also known as Uncredited Cheques) and their effects on Cash Book and Pass Book...
The company accountant reduces the balance in the cash book, i.e.credit the cash book when these cheques are written and sent. However, the bank will record such reduction in the pass book only when the payment has been made against them i. e. they are cleared from the banks.
Correct option is C. outstanding cheques. An unpresented cheque simply means that a cheque has been written and accounted for, but it has not yet been paid out by the bank from which the money is being drawn. They are also referred to as outstanding cheques because the funds in question are outstanding.
