Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________?
Correct answer: C. Cheques deposited and cleared
- A. Errors in cash book
- B. Errors in pass book
- C. Cheques deposited and cleared
- D. Cheques issued but not presented for payment
Explanation
A cheque deposited and cleared is credited by the bank and recorded in the Cash Book, so it normally creates no difference between the two balances. Unpresented issued cheques and errors in either book can cause differences.
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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.
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