PRC-1 · Chapter 9 · Question 29 of 100
A post-dated cheque received from a customer and kept in the safe should be:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Not entered in the cash book until the date on the cheque arrives.
Explanation
A post-dated cheque cannot be cashed until its date. It should be held and not recorded in the cash book until it becomes a valid, current-dated cheque.
More Bank Reconciliations MCQs
- Q31If a cheque issued by the business becomes stale and is returned by the supplier, what is the correcting entry in the cash book?
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- Q34The adjusted Cash Book balance is Rs. 15,000 (Debit). The bank incorrectly credited the business account with Rs. 2,000. Unpresented…
- Q35The bank statement shows a direct debit of Rs. 1,200 for electricity. To update the records, the accountant should: