Comparing cash book and bank statement for unpresented cheques

Steps:

• Unpresented cheques are payments issued by the business but not yet processed by the bank.
• In the cash book, cheques issued (outflows) are recorded on the credit side.
• In the bank statement, processed cheques appear as debits (withdrawals) in the debit column.
• Compare credit side entries of cash book against debit column of bank statement; unmatched cash book entries are unpresented.

Why B is correct:

• Unpresented cheques match credit side of cash book (payments recorded) to debit column of bank statement (bank withdrawals), per bank reconciliation principles.

Why the others are wrong:

• A: Credit column of bank statement shows deposits, not cheque payments.
• C: Debit side of cash book records receipts, irrelevant to payments.
• D: Debit side of cash book (receipts) mismatches debit column of bank statement (withdrawals).

Final answer: B