PRC-1 · Chapter 9 · Question 19 of 100
If a BRS starts with a favorable (debit) balance as per the Cash Book, how are uncredited lodgments treated to arrive at the bank statement balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) They are deducted.
Explanation
Uncredited lodgments have been added to the cash book, raising its balance. Because the bank has not yet cleared them, the bank's balance is lower. Thus, they must be deducted from the cash book balance.
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