c) The differences between cheques drawn but not yet presented and cheques deposited but not

yet credited

All cheques initiate as unpresented cheques, but the time required for them to clarify can differ

between banks. A cheque that is unpresented simply implies that it has been written and recorded

but has not yet been cashed by the bank from whom the funds are being drawn. Checks that have

not been presented are also known as outstanding checks since the funds involved remain

unclaimed (Kajan,2021). According to class (2021), There are three parties are involved in check

cashing: the payor, the payee and the bank institution. When a check is written, the payer's bank

is not aware that the payee has actually received a certificate for the funds of the payer. The

payment can only be processed once the payee deposits the payer's check at their bank. Until

now, the check has not been cleared. By debiting the payer's bank, the payee's bank sends the

payer's money to the payee's bank. These money will be deposited straight into the payee's

account after they have been obtained from the payer's bank. The payer's account balance won't

change until this point. As it’s known Banks are putting in a lot of efforts to ensure that their

accounting is accurate. They will make sure that any undeposited checks are taken into account

on the bank balance sheet during the bank reconciliation process. Furthermore, its responsibility

of individual account holder to follow and check the amount of money that enters and leaves the

back account. There are several reasons why outstanding checks appear like absence of urgency,

it is common for the payee not to cash check since it’s considered as additional income as a

result is not prioritized. The second reason of existence outstanding checks is delivery problem

checks can be returned to you through the email in case the payee’s address is incorrect or has

been changed. Moreover, checks can easily be lost or forgotten between car seats or hidden

under piles of papers.

Here is the process how bank reconciliation operates the unpresented checks, anytime the

company issues a check the amount paid will be deducted from the business’s general ledger

cash account, since the payee has not cashed the check the amount will remain in account, this

leads to an inflated account balance that differs from the general ledger. A business must

regularly balance its bank account with its financial statements in order to achieve consistency.

To maintain consistency the company will need to adjust their final cash balance which is known

by “balance per bank “, As it is mentioned above any checks that remain outstanding for long

period of time will have to be forfeited as unclaimed property to the business’s state otherwise,

they will be violating the unclaimed property law (Wakenshaw,2022). Example of the cheque

drawn but not yet presented is 6700 OMR.

Uncredited cheques are totally opposite of unpresented cheques. While the unpresented cheques

reflect the amount of money will be withdrawn from the business account in the future.

Uncredited cheques are the cheques that have been written and recorded in the payer’s account,

but has not been recognized by the bank. As well it represents an imbalance between the

company account and the bank account based on accounting procedures and payment methods.

Uncredited cheques are referred as uncleared cheques or uncollected cheques (Gocardless,2022).

The bank balance needs to be adjusted; an accountant cannot do an adjustment in bank statement

so to reflect the items bank reconciliation is prepared. In this case the outstanding or uncleared

lodgments will be add to the balance bank statement. Based from the case study example of

cheques deposited but not credited 11000 OMR.