Question

Cheques deposited but not collected will result in increasing the balance of the cash book when compared to pass book.

• A. True
• B. False

Answer 1

The correct option is A True

True. Cheques deposited but not collected are those cheques which are received by the business from its customers or debtors. The business records such cheques in its books by debiting the cash book, which increases the cash book balance and then deposits them into the bank for collection. However, the bank credits the pass book only when such cheques are cleared.