Question

Explain any four reasons behind the causes of difference in Cash Book of business and
Bank Pass Book at the time of reconciliation.​

Answer 1

Reasons for difference in Pass Book and Cash Book Balances
Cheques issued but not yet presented for payment in the bank.
Cheque paid into the bank for collection but not yet credited/collected by the bank.
Cheques paid into the bank for collection but dishonoured by the bank.
Interest allowed by the bank.
Interest and dividend collected by the bank.
Direct payment through bank.