Question

The difference in the balances of the cash book and the pass book can be because of _______________.

• A. error in recording the entries either in the cash book or pass book.
• B. same entry recorded in either of the book earlier and in the other book later
• C. debit balance of cash book is the credit balance of pass book.
• D. both (a) and (b)

Answer 1

The correct option is D both (a) and (b)

If an entry is recorded in either the cash book or the pass book first and not updated in either of them on a later date, it may lead to a difference between them both.

Also, if there is no consistency or an erroneous recording of transactions in recording entries in either of the books, it may lead to a difference between the two.

A debit position as per bank pass book means credit position as per cash book and vice versa.