Direct deposit by a customer into the bank account, not recorded in the Cash Book, will cause: MCQ with Answer and Explanation

Direct deposit by a customer into the bank account, not recorded in the Cash Book, will cause:
A. Pass Book balance to be higher than Cash Book balance
B. Cash Book balance to be higher than Pass Book balance
C. No difference in balances
D. Pass Book balance to be lower than Cash Book balance
Answer: Option A
Solution (By JKSSB Mock Tests)
The bank records the deposit immediately (increasing Pass Book balance), but the cash book is un-updated until the statement is received.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
The 'Indian Audit and Accounts Department' works under:
A. RBI
B. Planning Commission
C. Comptroller and Auditor General
D. Ministry of Finance

Correct Answer: Option C


Explanation:
The IA&AD is headed by the CAG.

Question #2
The 'Business Entity Concept' means:
A. The business is not liable for debts
B. The owner and business are the same
C. Only companies are separate entities
D. The business is a separate entity from its owners

Correct Answer: Option D


Explanation:
For accounting purposes, the business is treated as distinct from the proprietor.

Question #3
The 'Service Concession Arrangements' are dealt with by:
A. Appendix A of Ind AS 115 (IFRIC 12)
B. Ind AS 116
C. Ind AS 109
D. Ind AS 115

Correct Answer: Option A


Explanation:
Service concession arrangements (like BOT projects) are addressed by IFRIC 12, incorporated as an appendix.