Multiple choice

If a cheque is deposited in the bank and not yet collected by bank, the pass book will show _____ balance as compared to the cash book.

  1. lower

  2. higher

  3. equal

  4. fluctuating

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

(A)       The cheque recorded in the cash book will increase cash book balance. (B)       The pass book will not show higher balance in this case. (C)       Both the books will show different balances. (D)       The transaction will show different balances.