Multiple choice

If a cheque issued to supplier is not presented for payment to the bank, but wrongly shown in the cash column of cash book, then

  1. pass book balance will be higher than cash book balance

  2. cash book balance will be higher than pass book balance

  3. there would be no difference in the two books

  4. none of these

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

Since the cheque has not been presented for payment, so the bank would not subtract any amount from customer’s balance and on the other hand, no amount would be subtracted from the cash book because entry has been made in the cash column. So, there is no difference in the two books.