Which of the following items does NOT cause a difference in the bank balance and the book balance on a bank reconciliation?
A)Cancelled cheques
B)Deposits in transit
C)Dishonoured cheques
D)Outstanding cheques

Question

Quizplus · Accepted Answer

Cancelled cheques do not cause a difference between the bank balance and book balance because they have already been processed and deducted from the account balance. The other items listed (deposits in transit, dishonoured cheques, and outstanding cheques) do cause differences that need to be reconciled.

Which of the Following Items Does NOT Cause a Difference