FFA

ASSIGNMENT – 2
QUESTION 2
FALSE. The bank balance of the cash book is misleading since it
has an overcast credit side and shows a lower balance than the
passbook balance.

QUESTION 3
Yes, transactions that are entered into the cash book and pass book
during two different periods may have different periods. Because on
March 2, 2022, a company receives a check, and on March 5, 2022,
the check is deposited in a bank. Since the check was only
deposited to the bank on that particular day, the firm here records its
transaction in its cash book as of March 2, 2022, but when it goes to
the bank, it enters that transaction record in the passbook on March
5, 2022.

QUESTION 5
A business is not required to deposit a check the same day that it
receives it at the bank.
1. Cheques are written but not delivered to the bank:
3,200 will be deducted from the Credit Balance according to the
Pass Book and added to the Debit Balance according to the Cash
Book.
2. Any interest that the bank credits are put to the debit side balance
according to the cash book and deducted from the credit side
balance according to the passbook. In other words, Rs. 150 will be
deducted from the credit side amount and added to the debit side
balance.

NAME – NIDHI BHAT

SRN - 050