WAEC Accounting 2021 Theory — Question 4

Model answer

(a) A bank reconciliation statement is a statement used to investigate the difference between the cash book balance and the bank statement balance; it is used to reconcile that difference. (b)(i) Bank charges: the amount which the bank charges on transactions occurring on the customer's account. (ii) Standing order: a periodic order given by a customer to their banker to pay a certain amount to a designated person on a periodic basis. (iii) Credit transfer: the amount paid directly into a customer's account with the bank. (iv) Dishonoured cheque: a cheque rejected by a bank due to one irregularity or another. (v) Unpresented cheques: cheques issued to customers for payment but which the customers have not yet tendered to the bank for payment. (vi) Uncredited cheques: cheques received by a customer from another party and submitted to the bank, but which are yet to be credited into the customer's account.