Bank Rec

Question 1

what are unpresented cheques

Answer 1

chews that have been drawn(issued by business)and entered in the cash book but has not been presented to the bank(i.e trade payable has received the cheque but not yet banked it)

Question 2

what are outstanding lodgements

Answer 2

bank deposits(amount payed into bank) that have been recorded in the cash book but not yet proceed by bank,(i.e business has put a cheque in the bank but the bank has not yet cleared it)

Question 3

what does a bank rec statement look like

Answer 3

Bal as per bank statement
Less:unpresented cheques cr
Add:outstanding lodgements dr
=bal as per Cash book