Accounting

7. THE BANK CHARGES ETC. AND INTEREST ON OVERDRAFT!
Our account is debited with the bank charges and interest on overdraft and the intimation is sent to by the bank. On receiving the intimation from the bank, we record them in the Cash Book, For this I Cash Book will show more balance and the Pass Book will show leu balance.
9. ERRORS AND OMISSIONS:
The Cash Book balance and the Pass Boole balance can also disagree if there is any error or tnisu in the Cash Book or in the Pass Book. A few examples of such errors and omissions are given below;
S.(a) We have received a cheque from a debtor and recorded it in the Cash Book (debited in Cash Boc but have forgotten to sent it to the bank for collection. For such omission, the Cash Book will show me balance and the Pass Book will show less balance.
8.(b) We .have received a cheque from a debtor and deposited It into the bank for collection but hi forgotten to record it in the Cash Book, or wrongly recorded in the 'cash column' of the Cash Book or "Bankxolumn of Cash Book on 'credit side' instead of debit side. For such errors, the Cash Book v show bss balance and the Pass Book will show more balance.
8.(c) We have received a cheque'from a debtor, and deposited it into the bank and recorded it in the Ci Book, but the bank has forgotten to record it in the Pass Book or wrongly recorded it on the debit si [withdrawal side) of the Pass Book. For such mistake, the Cash Book will snow more balance and 1 Pass Book wID shew less balance.
&(B.(«) We have issued a cheque to our creditor and the bank has paid the cheque but has forgotten to recc it in the Pass Book. For this the Cash Book will show less balance and the Pass Book will show dm balance.
8.(I) There may be a mistake in casting (Totaling) the Cash Book. Suppose the debit side of the Ci Book is overcast by Rs. 100 (Totaling is made more by Rs. 100). For this, the Cash Book will show mo balance and the Pass Book will show less balance.
8,(g) On the other hand, if the credit side of the Cash Book is overcast, for this, the Cash Book will she feu balance and the Past Book *IU show more balance.
8.(h) If the bank has wrongly debited our account (Pass Book), for mis. the Cash Book will show mo balance and the Pass Book will show less balance.
8.(t) If the bank has wrongly credited our account (Pass Book), for this, the Cash Book will show k balance and the Pan Book will snow more balance.
B»(f) We may have more than one accounts with the bank, e.g. Account No. 1188 and Account No. 1 It A cheque drawn on Account No. 1188 may be wrongly recorded in Account No. 1189 by the bank. Insu it case for Account No. 1188, the Cash Book will show less balance and the Pass Book of A/c No. Ill win show more balance.