The cash book always shows a debit balance. On investigation, the following are the findings: (a) Bank charges of Rs.

2,000 on overdraft and bank charges Rs. Cheques deposited but not credited in December, due to this there is increase in our book balance but not in passbook. (iv) A credit side of the Bank Column of the Cash Book was under-cast by Rs. (c) Incidental charges not recorded in Cash Book ₹ 80. (iii) There were debits in the Pass Book for interest Rs. Therefore, it is possible that the date on which the bank has debited these charges and the date on which the customer has recorded the same on receipt of information to be different. The balance of cash book always means cash in hand. In the same way no Bank A/c is opened in ledger for recording bank transactions, rather … 470 issued to the supplier was entered by mistake as a receipt in the Cash Book. Cash A/c is removed from the ledger and instead of it the Single Column Cash Book is kept to record cash transactions. So, the cheques deposited balance will be reversed by deducting it from the balance to match with pass book balance. Changes according to the hotel category. It works as a book of original entry as well as a ledger account. This should explain the reason why the collection charges debited by the bank on Aug 18 th , have not yet been recorded in the cash book. (d) Cheques were issued for ₹ 7,800 but only ₹ 4,400 were presented for payment. The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts. It works as a book of original entry as well as a ledger account. 180 was returned by the Bank marked as ‘refer to drawer’ but it’s not entered in Cash Book. There are 3 types of a cash book. A company that properly maintains a cash book does not need to open a cash … 1)B.R.S #bank charges not yet recorded in the cash book. (c) A cheque of Rs. In case a transaction affects both the cash and the bank account, a contra entry is recorded. Single Column Cash Book. Dividends collected by the bank not recorded in the cash book 1,800 Deposit made by a debtor directly into bank not recorded in cash book 4,500 18,300 26,300 Less : Cheques deposited but not yet collected 6,000 Bank charges recorded in bank books only 750 So, the cheques deposited balance will be reversed by deducting it from the balance to match with pass book balance. The features of the cash book are as follows; Since only cash transactions are recorded in the cash book it is a special journal. 180 was returned by the Bank marked as ‘refer to drawer’ but it’s not entered in Cash Book.