Uncredited Deposits in Bank Reconciliation

Steps:

• Recall that bank reconciliation compares cash book and bank statement to identify timing differences.
• Identify deposits: these are amounts paid into the bank by the company.
• Check for "uncredited": means the deposit is recorded in the cash book but not yet on the bank statement.
• Match options to this definition to find the timing discrepancy.

Why D is correct:

• An uncredited deposit is defined as cash or cheques deposited by the company, entered in its cash book, but not yet credited (recorded) by the bank on the statement due to processing delays.

Why the others are wrong:

• A: This is an outstanding cheque, a debit item not yet cleared by the bank.
• B: This is a bank error or direct deposit not yet in the cash book, not an uncredited deposit.
• C: This is a bank charge, an unrecorded deduction from the account.

Final answer: D