Unpresented cheque
What is an unpresented cheque?
An unpresented cheque is a payment in the cash book that has not reached the bank statement yet.
The business writes a payment in its cash book on the day it is made. The bank only shows it when the money actually moves.
It is a timing difference, and it clears by itself.
Example
A bakery writes a cheque for £160.00 on 29 June and enters it in the cash book. The June bank statement does not show it. In the bank reconciliation, £160.00 is taken off the balance on the bank statement.
Why it matters
The cash book needs no change for it. It is listed in the bank reconciliation, where it explains part of the gap between the two balances.
Practise it
Practise it nowWhy the two balances differ
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].