PRC-1 · Chapter 9 · Question 80 of 100
If a business receives a cheque from a customer but keeps it in the office safe for a week before depositing it, how is it classified in the BRS during that week?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) It does not appear in the BRS
Explanation
A cheque not yet deposited is treated internally as cash/cheques in hand. It does not affect the bank balance and is not yet part of the bank reconciliation process.
More Bank Reconciliations MCQs
- Q82A cheque for Rs. 600 deposited into the bank was incorrectly recorded as Rs. 60 in the cash book. What is the correct adjusting entry?
- Q83A cheque for Rs. 600 deposited into the bank was incorrectly recorded as Rs. 6,000 in the cash book. What is the correct adjusting entry?
- Q84A payment of Rs. 800 was incorrectly recorded as Rs. 80 in the cash book. What is the correct adjusting entry?
- Q85A payment of Rs. 800 was incorrectly recorded as Rs. 8,000 in the cash book. What is the correct adjusting entry?
- Q86A Bank Reconciliation Statement is normally prepared: