3.2 - Causes of Differences Between Cash Book and Bank Statement
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Practice Questions
Test your understanding with targeted questions
Define outstanding checks.
💡 Hint: Think about checks you've written but haven't seen cleared.
What is a deposit in transit?
💡 Hint: Consider deposits made that the bank hasn't processed yet.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is an outstanding check?
💡 Hint: Think about checks that remain uncashed.
True or False: Deposits in transit can lead to a higher cash book balance than the bank statement.
💡 Hint: Consider timing differences.
3 more questions available
Challenge Problems
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A company has a cash book balance of ₹8,000. They issued a check for ₹1,500 that is outstanding and have a deposit in transit of ₹2,500. What is the correct balance you should expect to see in the bank statement?
💡 Hint: Apply the adjustments in the correct order: Start with cash book, subtract the outstanding check, then add the deposit.
If a bank charge of ₹300 is recorded in the bank statement but not in the cash book, and the cash book's balance shows ₹5,500, what will be the correct cash book balance after accounting for the charge?
💡 Hint: Make sure to subtract the bank charge from the cash book balance.
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