PRC-1 · Chapter 9 · Question 77 of 100
An unpresented cheque is generally considered valid for how long before it becomes 'stale' and requires reversal in the cash book?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 6 months
Explanation
In standard banking practice, cheques are valid for 6 months. After this period, they become time-barred or stale and must be reversed in the cash book.
More Bank Reconciliations MCQs
- Q79When reconciling from the bank statement balance to the cash book balance, how are unpresented cheques treated?
- Q80If 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…
- Q81The bank column of a cash book showed a debit balance of Rs. 12,000. Unpresented cheques were Rs. 4,000. Uncleared lodgements were Rs…
- 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?