Question

Which of the following will not require adjustment of the cash book balance?

• A. Error in pass book.
• B. Cheque issued but not presented for payments.
• C. Cheque deposited but not cleared.
• D. All of the above.

Answer 1

Answer: (D)

All of the above.

• An error in pass book would require adjustment of the pass book balance and not the cash book balance.
• Cheque issued but not presented for payments and cheque deposited but not cleared both these situations arise due to timing differences and would get cleared and adjusted automatically and so will not require any adjustment of the cash book balance.