Question

The difference in the balances of both the cash-book and the pass-book can be because of :

• A. Timing difference of recording of the transaction.
• B. Errors in cash book committed by account holder.
• C. Error in pass book committed by Bank
• D. All of the above.

Answer 1

The correct option is D All of the above.

The difference between the balances of cash book and pass book is because of the timing difference, errors in cash book committed by account holder, error in pass book committed by bank. Some of the reasons can be cheques issues and not presented in the bank, interest allowed by the bank, direct payment through bank, cheques dishonored, etc.