Difference in Bank Balance as per Pass Book and Cash Book may arise on account of_____________?
Correct answer: D. Both A and B
- A. Cheque issued but not presented
- B. Cheque issued but dishonoured
- C. Cheque deposited and credited by bank
- D. Both A and B
Explanation
An issued cheque not yet presented remains recorded in the cash book but is not yet recorded by the bank, creating a difference. A dishonoured cheque can also create a difference if the bank reverses it before the cash book is updated.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
The Bank Reconciliation Statement is prepared?
Bank reconciliation is a statement prepared to reconcile__________?
Benefits of preparing Bank Reconciliation Statement includes___________?
Debit side of Bank Pass book corresponds to___________?
Credit balance as per Cash Book mean____________?
Which of these items are taken into consideration for preparation of adjusted Cash Book