Question

Favourable bank balance as per the cash book will be less than the bank pass book balance when there are unpresented cheques for payment.

• A. True
• B. False

Answer 1

The correct option is A True

True.

Unpresented cheques are cheques issued by the business, but not yet presented for payment at the bank. This reduces the balance in cash book as compared to balance as per pass book. Balance in pass book is effected by the bank only when such cheques are cleared by the bank.

So, favourable bank balance as per cash book will be less than the bank pass book balance when there are in unpresented cheques for payment.