ACCA FA · Chapter 10 · Question 10 of 12
Which of the following items in a bank reconciliation requires an adjustment to the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Bank charges shown on the bank statement
Explanation
Bank charges have been deducted by the bank but not yet recorded by the business, so the cash book must be updated. Unpresented cheques and outstanding lodgements are timing differences dealt with in the reconciliation, and bank errors are corrected by the bank, not in the cash book.
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