Question

If we take balance as per cash book, _________ will be added to get balance as per pass book.

• A. interest given by bank
• B. interest charged by bank
• C. cheque deposited but not cleared
• D. payments made by the bank as per standing instructions

Answer 1

The correct option is A interest given by bank

Entry of interest given by bank would be first entered in the pass book by the bank and only after that the account holder would be able to enter the same in the cash book, so at this given point of time the pass book balance would be higher than cash book . Interest given by the bank is an income to the account holder. So, if the balance as per cash book is the starting point then we would have to add interest given by bank to reach the pass book balance.