Match each cause of discrepancy between the Cash Book and the Bank Statement listed on the left with its correct accounting description on the right.
- Unpresented chequesCheques issued by the business to suppliers that have not yet been presented to the bank for payment.
- Uncredited lodgementsCheques received and debited in the Cash Book that have not yet been cleared and credited by the bank.
- Credit transfersDirect payments made by customers into the business bank account that are not yet entered in the Cash Book.
- Bank chargesService fees deducted directly by the bank that have not yet been recorded in the Cash Book.
Answer
Unpresented cheques match cheques issued by the business but not yet presented to the bank; Uncredited lodgements match cheques debited in the Cash Book but not yet credited by the bank; Credit transfers match direct payments by customers into the bank account not yet in the Cash Book; Bank charges match service fees deducted by the bank not yet entered in the Cash Book.
Each discrepancy source is correctly paired with its accounting description based on whether the item is an unrecorded cash book entry or a timing difference in bank clearing.
Step-by-Step Solution
Key Concept
Causes of Discrepancies Between Cash Book and Bank Statement