25. Which of the following items is not a reason for the difference between the balance as per the cash book and the pass book?

A. Omission of a contra entry in the cash book
B. Cheques deposited but not yet cleared
C. Omission of an entry in the cash column of the cash book
D. Cheques issued but not yet presented

Question

13-08-2024
Business

Answered

25. Which of the following items is not a reason for the difference between the balance as per the cash book and the pass book?

A. Omission of a contra entry in the cash book
B. Cheques deposited but not yet cleared
C. Omission of an entry in the cash column of the cash book
D. Cheques issued but not yet presented

Answer :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-08-13T09:50:23-04:00

Final answer:

The differences between the balance as per cash book and pass book can arise from various factors like omitted entries and uncleared cheques.

Explanation:

Omission of a contra entry in cash book: This occurs when a transaction is recorded in one book but not the other, leading to a discrepancy.

Cheques deposited but not yet cleared: These represent funds that have not been fully processed, causing a temporary difference in balances.

Cheques issued but not yet presented: Similar to the previous point, these are funds that have been deducted in one book but not yet reflected in the other, causing a discrepancy.

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