alleryStart learning →An unknown dishonour of a deposited cheque leaves the cash book
AUnderstated
BOverstated
CCorrectly stated
DUnaffected
Answer & Solution
Correct answer: B. Overstated
The cash book still counts the receipt that the bank has reversed, so the balance is too high.
Keep practising Bank Reconciliation Statement
Browse all Bank Reconciliation Statement questions for CA Foundation, or explore more Accounting topics.
Related questions
Passbook exceeds the cash book. Which is the likely cause?After reconciling, differences caused by the firm's own errors are fixed inCustomers commonly use bank statements toWhich is not a usual reason for a cash book and passbook difference?A discrepancy found during reconciliation may be recorded as aThe purpose of account reconciliation under GAAP is to provideIssuing a cheque without adequate funds and depositing cover later is calledMICR information on cheques mainly supports