Question

State whether each of the following statements is True or False.
1. Passbook is the statement of account of the customer maintained by the bank.
2. A business firm periodically prepares a bank reconciliation statement to reconcile
the bank balance as per the cash book with the passbook as these two show
different balances for various reasons.
3. Cheques issued but not presented for payment will reduce the balance as per
the passbook.
4. Cheques deposited but not collected will result in increasing the balance of the
cash book when compared to passbook.
5. Overdraft as per the passbook is less than the overdraft as per cash book when
there are cheques deposited but not collected by the banker.
6. The debit balance of the bank account as per the cash book should be equal to
the credit balance of the account of the business in the books of the bank.
7. Favourable bank balance as per the cash book will be less than the bank passbook
balance when there are unpresented cheques for payment.
8. Direct collections received by the bank on behalf of the customers would increase
the balance as per the bank passbook when compared to the balance as per the
cash book.
9. When payments made by the bank as per the standing instructions of the
customer, the balance in the passbook will be more when compared to the cash
book.

Answer 1

Answer:

I have a daut for this answer

Answer 2

Explanations is given to the answers.

Explanation:

1. True

Passbook is the book which is maintained by the bank for its customer  . It shows all the bank transaction of the customer and is prepared by the bank itself.

2. True

There are various reasons by which there may come the difference between the pass book and cash book and in order to find out the difference between then Bank reconciliation statement is prepared.

3. False

Cheque issued but not presented for payment will not reduce the pass book as it is not yet recorded in passbook. Moreover it will reduce the cash book as per the customer.

4. True

when a customer deposit the cheque he increase its cash book with the amount but as it s not collected pass book will remains the same .

5. False

The overdraft will be more as per the passbook as compared to the cash book as the customer increases its amount when he deposit the cheque into the bank but as it is not collected by the banker the balance as per the passbook will remain less.

6. True

7. True

8. True

9. False

In such a case the balance as per the passbook will be less than the balance as per the cash book.