Loading....
Coupon Accepted Successfully!

 

Differences Caused by Errors


Sometimes the difference between the two balances may be because of an error on the part of the bank or an error in the cash book of the business. This causes difference between the bank balance shown by the cash book and the balance shown by the bank statement.

5.1.2(a) Errors committed in recording transaction by the firm
Omission or wrong recording of transactions relating to cheques issued, cheques deposited and wrong totaling, etc. committed by the firm while recording entries in the cash book cause difference between cash book and passbook balance.

5.1.2(b) Errors committed in recording transactions by the bank
Omission or wrong recording of transactions relating to cheques deposited and wrong totaling, etc. committed by the bank while posting entries in the passbook also cause differences between passbook and cash book balance.




Test Your Skills Now!
Take a Quiz now
Reviewer Name