Which of these items are taken into consideration for preparation of adjusted Cash Book

Correct answer: A. Mistake in Cash Book

  • A. Mistake in Cash Book
  • B. Mistake in Pass Book
  • C. Cheque issued but not presented for payment
  • D. Cheques deposited but not cleared

Explanation

The adjusted cash book is corrected for entries or errors that should appear in the business’s own records, such as a cash-book mistake. Cheques not presented or not cleared are timing differences handled in the reconciliation statement, not by adjusting the cash book.

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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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