GENERAL KNOWLEDGE

Detailed explanation-1: -Difference in balance as per pass book and balance as per cash book due to errors committed in recording transaction by the firm and errors committed in recording transactions by the bank are termed as difference arising due to errors in recording the transaction.

Detailed explanation-2: -The differences between the cash book and the bank passbook is caused by: timing differences on recording of the transactions. errors made by the business or by the bank. When cheques are issued by the firm to suppliers or creditors of the firm, these are immediately entered on the credit side of the cash book.

Detailed explanation-3: -The cash balance shown by a firm on its books is called the book or ledger balance whereas the balance shown in its bank accunts is called the available or collected balance. The difference between the available balance and the ledger balance is referred to as the float.

Detailed explanation-4: -Key differences between Cash book and Passbook Information recorded: Cash Book records all cash transactions, including cash received, cash payments, and cash balances, while Passbook records all transactions in a bank account, such as deposits, withdrawals, and transfers.