Question

Which of the following will require adjustment of the cash book balance?

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

Answer 1

Answer: (A)

Error in cash book.

Cheque issued but not presented for payment arises due to timing difference and would get cleared and adjusted automatically. Whereas an error in cash book such as over casting of the credit side of the bank column will require adjustment of the cash book balance.