Question

State the reasons when the cash book balance will be higher than the pass book balance.

Answer 1

The reasons when cash book balance will be higher than the passbook balance are

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

(ii) Direct debits made by the bank on behalf of the customers.

(iii) Direct payment made by the bank on behalf of the customers.

(iv) Cheques deposited/bill discounted dishonoured.