CBSE Class 11-commerce Answered

Cheques deposited but not collected and credited by the bank:

Entry is passed by the firm/customer in the cash book when it receives cheques from its debtors which increase the balance as per the cash book. But, the bank credits the firm’s account only when they have received the payment from the customer’s bank or in other words, once the cheque is collected by the bank. This time gap between depositing of the cheques and the collection by the bank causes difference between the balances.

For example, XYZ Company Ltd. deposited a cheque of Rs.3,000 on April 20, 2016. The cheque was collected on May 2, 2016. In case, the bank sends a statement of account up to April 30, 2016; there will be a difference of Rs.3,000 between the balance shown by the cash book and the pass book.