When the sum of money appears on the credit side of the cash book, but not on the debit side of the bank statement, the sum is regarded as
Answer Details
When the sum of money appears on the credit side of the cash book, but not on the debit side of the bank statement, the sum is regarded as an "unpresented cheque". This means that a cheque was issued by the business but has not yet been presented for payment at the bank. The amount of the cheque is recorded in the cash book as a credit entry when it is issued, but it will not appear on the bank statement until it is presented and paid by the bank. Therefore, the amount of the unpresented cheque needs to be deducted from the balance in the bank statement to arrive at the correct balance in the bank account.