WAEC Accounting 2015 Theory — Question 2

Model answer

(i) Unpresented cheques: cheques issued by the holder in favour of customers but which are yet to be presented to the banker for deduction from the account of the holder. (ii) Uncredited cheques: cheques submitted to the bank in favour of the holder but which are yet to be credited to the account of the holder. (iii) Bank charges: charges deducted by the bank for services rendered, but which the holder is yet to reflect in the cash book. (iv) Standing order: the periodic amount which a holder has instructed the banker to deduct from his/her account, but which the holder is yet to reflect in the cash book. (v) Direct transfer: monies credited in favour of a holder directly into his bank account, but which the holder is unaware of.