Question

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

• A. Errors in recording the entries either in the cash-book or pass-book
• B. Omission of same entry in both cash-book and pass-book
• C. Debit balance of cash book is the credit balance of pass-book
• D. All of the above

Answer 1

Answer: (A)

Errors in recording the entries either in the cash-book or pass-book

Amount deposited into bank is recorded in the bank column of cash book on the debit side and while withdrawals are recorded on the credit side.

Bank also maintains an account of the account holder in its books of accounts. Deposits by the account holder are recorded on the credit side of the account holder's account and withdrawals are recorded on the debit side of the account holder's account.

Balances of cash book and pass book must be same but in some cases the balances of cash book and pass book may vary due to errors in recording the entries either in the cash book or pass book.