Glossary · Also called Outstanding cheque
Unpresented cheque
A cheque the business has written and recorded but that has not yet been paid by the bank.
What it means
A cheque entered in the cash book as a payment but not yet cleared through the bank at the reconciliation date.
Example
A RM300 cheque sent to a supplier is in the cash book but not yet on the bank statement.
Why it matters
It explains why the cash book shows less than the bank statement and is a timing difference, not an error.
In practice
An unpresented cheque is already entered on the credit (payments) side of the cash book but not yet debited by the bank. It explains a gap between the two records in the bank reconciliation statement. The business has recorded it but the bank has not, so the cash book balance is lower than the bank statement balance by that amount.
For example, the cash book shows RM900 and a RM150 cheque to a supplier has not yet cleared. The statement still shows RM1,050. In a reconciliation that starts from the statement balance, you deduct the RM150 to arrive at the cash book figure.
Its opposite is the uncredited deposit, where money paid in has not yet reached the statement. An unpresented cheque delays a payment out. An uncredited deposit delays a receipt in. Both are pure timing differences and need no correcting entry in the cash book.
If you are unsure whether to add or deduct each item in a reconciliation, we can help. One of our teachers can give you a simple rule and practise it with you. Book a trial class.
Related terms
Syllabus reference: Cambridge 0452 and 0985, syllabus for 2027 to 2029, sub-topic 3.3 Bank reconciliation (page 13).
Definitions here are general accounting explanations for study. For your board's exact wording, see its official syllabus via Sources.
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