Question on: JAMB Accounting - 2024
The following are causes of discrepancies between the cash book and the bank statement balances except:
A
errors
B
bank charges
C
standing order
D
bank deposit
Ask EduPadi AI for a detailed answer
Correct Option: D
Discrepancies arise mainly from timing differences and errors:
Errors: Mistakes by the bank or business cause differences.
Bank charges: Often appear first on the bank statement before being recorded in the cash book.
Standing order: The bank may process these before the business updates its records.
Bank deposit: Deposits should appear in both the cash book and bank statement and therefore should not cause a discrepancy.
Thus, the correct answer is bank deposit.
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