Multiple choice

Direct payment to the third party on behalf of the account holder is initially posted in

  1. the cash book when the amount is paid by the bank

  2. the cash book when the entry is posted in the pass book

  3. the pass book when the amount is paid by the bank

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 Direct payment to the third party on behalf of the account holder needs to be posted in the Cash Book after the entry has been posted in the pass book. 

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