In bank reconciliation statements, unpresented cheques issued by a business to suppliers but not yet processed by the bank should be:

Explanation

• Unpresented cheques (outstanding cheques) have already been deducted in the business cash book, but the bank has not yet cleared them.
• To reconcile the bank statement balance to the correct cash book balance, unpresented cheques must be added to the bank statement ending balance.
• Uncredited deposits (lodgements in transit) are deducted from bank statement balances during reconciliation.