Multiple choice

If a cheque received by a customer has not been paid to a bank, but duly entered in cash book, then

  1. passbook balance would be higher than cash book balance

  2. cash book balance would be higher than passbook balance

  3. there would be no difference in the two books

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

Since the cheque has not been deposited, the bank would not add any amount in the customer's balance, but the amount has already been added to the cash book. Hence, cash book balance would be higher than passbook balance.

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