1
Question
Unrepresented cheques are also referred as __________.
Unrepresented cheques are also referred as __________.
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Solution
The correct option is C outstanding cheques
Unpresented cheques are cheques which are written and sent to its suppliers or creditors by the company.The company accountant reduces the balance in the cash book, i.e.credit the cash book when these cheques are written and sent. However, the bank will record such reduction in the pass book only when the payment has been made against them i. e. they are cleared from the banks.Thus, they are also referred as outstanding cheques as the payment which is to be made against them is still outstanding till the time they are not cleared from the banks.
Unpresented cheques are cheques which are written and sent to its suppliers or creditors by the company.
The company accountant reduces the balance in the cash book, i.e.credit the cash book when these cheques are written and sent. However, the bank will record such reduction in the pass book only when the payment has been made against them i. e. they are cleared from the banks.
Thus, they are also referred as outstanding cheques as the payment which is to be made against them is still outstanding till the time they are not cleared from the banks.
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