Continue with your mobile number
Below mentioned are the causes of difference between the cash book and the pass book: 1. Cheques issued but not presented for Payment A trader immediately records the payment made by a cheque to a creditor or, for any expenses, in the cash book credit side (payments side). The debit for the same, however, will appear in the pass book only when payee presents the cheque for payment to the bank. There is usually a time lag between the date of issue of the cheque by the drawer and presentation by the payee. 2. Cheques Deposited into Bank but not yet collected The customers will issue cheques to the trader on the bank. As and when the cheques are received, he will deposit these in his bank account and entries will be immediately recorded in his cash book on the debit side (receipts side). His banker, however, will credit the amounts of the cheques, to the customer's account, on the dates of clearance of the cheques by the clearing house. There is a time lag between the date of deposit of the cheques in the bank by the trader and that of credit in his account in the bank. 3. Bank Charges For collection of outstation cheques, payments made as per the standing instructions, issue of cheque books, the bank will debit customer's account and the trader might forget about the timing of the charges to be reflected in his cash book. 4. Interest on Saving Bank The bank credits the customer's account in the pass book for the interest on the credit balance, the exact amount of which may not be known to the trader. 5. Interest on Overdraft When the trader draws more than what he has in the bank account, the account is said to be overdrawn. This facility is normally availed by a trader with prior arrangements with his bank. The banker debits the customer's account for the interest on an overdrawn balance which may not be known to the trader. 6. Amount Collected by Bank on Standing Instruction The trader often issues some standing instructions, authorising his banker to collect on his behalf certain amounts due to him, such as interest, dividend etc.
A shopkeeper sold an article for Rs. 600 after offering a discount of 40%. If he earned a profit of 50%, then find the ratio of cost price to the marked...
A merchant increased the price of a blouse by 20%. If the labeled price of the blouse is Rs. 600, and in this transaction, the shopkeeper made a profit ...
A shopkeeper purchases rice of two varieties ‘A’ and ‘B’ at Rs. 18 per kg and Rs. 45 per kg respectively. He mixes 1 kg of variety ‘A’ rice ...
The cost price of two articles is same. One article is sold at 40% profit and another at 10% loss. If the selling price of one article is Rs. 700 more t...
The selling price of an article is 30% more than its cost price. Given that the ratio of the marked price to the cost price is 26:15, determine the appr...
The selling price of y items is equal to the cost price of 540 items. If the profit made is 44%, then find the value of y.
If 7% of S.P. is equal to 8% of C.P. and if 9% of S.P. is Rs. 2 more than 10% of C.P, then find C.P. and S.P.
A sold a car to B at 11% profit, who later sold it back to A at 4% loss. If initially A purchased the car for Rs. 250000, then find the total profit ear...
One article is sold at 10% profit while other is sold at 5% loss such that the difference between their selling prices is Rs. 180. If the cost price of ...
Profit percentage received on a product when sold for Rs.500 is equal to the percentage loss incurred when the same product is sold for Rs.300. Find the...