Multiple choice

A cheque of Rs. 5,600 is received from Sharma & Sons and is sent to bank, but not yet collected by the bank. It would be

  1. posted in debit side of cash book and credited in pass book

  2. debit side of cash book only

  3. credit side of cash book only

  4. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 It would be posted in debit side of cash book only.The customer would make the entry when it is sent to bank for collection. But it would be credited in pass book only when it is collected by bank. Its amount is not yet collected by bank and so it would not be posted in pass book.