Which of the following is/are the reason(s) for difference between cash book and bank passbook?
Which of the following is/are the reason(s) for difference between cash book and bank passbook?
I. Cheques paid into the bank but not yet collected
II. Interest and dividends collected by the bank
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Correct answer: (C) Both I and II
Explanation
Both cause differences. Cheques deposited but not yet collected appear in the cash book but not in the passbook. Interest or dividends collected by the bank appear in the passbook first.