Give two examples of errors committed by the firm in recording transactions in the cash book.
Asked by Topperlearning User | 15th Jul, 2016, 04:31: PM
Errors committed in recording transactions by the firm:
- A cheque of Rs.500 received from the debtor was recorded in the cash book but not sent to the bank for collection.
- A cheque of Rs.1500 issued by the firm is wrongly recorded as Rs.150 on the credit side of the cash book.
Answered by | 15th Jul, 2016, 06:31: PM
- What is the need and purpose of preparing a bank reconciliation statement?
- Explain in brief the reason for the difference caused by “cheques paid into the bank but not yet collected” with an example.
- What is bank reconciliation statement and why is it prepared?
- Explain the causes/reasons for the disagreement between the cash book balance and the passbook balance.
- Explain briefly 4 reasons for disagreement between the cash book balance and the passbook balance caused because of time gap.
- Give two examples of errors committed by the bank in recording transactions in the passbook.
- List 4 items having an effect of higher balance in the passbook.
- List 4 items having an effect of higher balance in the cash book.
- What is debit balance and credit balance as per cash book and bank pass book?
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