Multiple choice

If the interest credited in the pass book by a bank on 31st March is debited in the cash book on 1st April, then

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

  2. cash book balance would 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
A Correct answer
Explanation

Since the interest is credited (added) by the bank and on the other hand, no amount is added to the cash book upto 31 March, there would be a difference in the two books.

Keep practicing — related questions