WAEC Accounting 2015 Paper

Concept:Unpresented cheques are cheques issued by a business and recorded in its cash book, but not yet presented to the bank for payment.Explanation:When a business issues a cheque to a supplier or creditor, it immediately records that cheque in the bank column of its cash book.At that point, the bank has not yet paid the amount because the cheque has not been presented or cleared through the banking system.These cheques are known as unpresented cheques or outstanding cheques.They cause a timing difference in the preparation of a bank reconciliation statement.On the bank statement, the amount of such a cheque is not shown, so the cash book balance is lower than the bank statement balance.This means the cheque has been entered by the business in its cash book, but the bank has not yet recorded or processed it.Answer:Option A: That have been recorded in the cash book but not by the bank.