Question

State the causes of difference occurred due to the time lag.

Answer 1

(i) Cheques issued by the bank but not yet presented for payment.

(ii) Cheques paid into the bank but not yet collected.

(iii) Direct debits made by the bank on behalf of the customer.

(iv) Amounts directly deposited in the bank account.

(v) Interest and dividends collected by the bank.

(vi) Direct payments made by the bank on behalf of the customers.

(vii) Cheques deposited/bills discounted dishonoured.