Bank Reconciliation Statement · Class 11 · CBSE · Commerce Accountancy
Which of the following causes a difference between the cash book and pass book balances due to timing?
Practice question from Bank Reconciliation Statement (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-F3CF36
Which of the following causes a difference between the cash book and pass book balances due to timing?
- A.Cheques issued by the firm but not yet presented for paymentCorrect answer
- B.A direct payment made by a customer into the bank account not recorded in the cash book
- C.An error by the bank in debiting the account twice for the same charge
- D.Dishonour of a discounted bill of exchange recorded wrongly
Solution
Cheques issued but not yet presented create a timing difference because the firm reduces its cash book balance immediately upon issuing, while the bank reduces the pass book balance only when the cheque is presented for payment.
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