Multiple choice

Directions: Choose the correct option for the given question.

Which of the following transactions is not entered in the amended cash book?

  1. Interest collected and credited by the bank but not entered in cash book

  2. Income tax paid by bank as per standing instructions

  3. Deposited cheque but not collected by the bank

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

A deposited cheque not yet collected is a timing difference between the cash book and pass book, which is handled in the Bank Reconciliation Statement, not by amending the cash book.

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