Explain these transactions in Brs:
- amount debited in the bank column of cb but not deposited in bank.
Dear Student,
The situation of "amount debited in the bank column of cash book but not deposited in bank" arises when the entry of "cheque received/cash to be deposited" has been made in cash book but the cheque/cash has not yet been deposited/credited in bank.
This transaction presents a situation wherein we have received a cheque & recorded the same in our books (cash book) but have not yet deposited/credited by Bank (pass book) . Thus, when we reconcile cash book & Bank statement, this transaction forms part of Bank reconciliation statement.
For example, ABC Co. receives a cheque of Rs. 10,000 & records the same on the debit side in bank column of cash book. The cheque has not yet been deposited in bank & so by the amount of cheque bank balance as per cash book is more than that as per pass book.
Regards
The situation of "amount debited in the bank column of cash book but not deposited in bank" arises when the entry of "cheque received/cash to be deposited" has been made in cash book but the cheque/cash has not yet been deposited/credited in bank.
This transaction presents a situation wherein we have received a cheque & recorded the same in our books (cash book) but have not yet deposited/credited by Bank (pass book) . Thus, when we reconcile cash book & Bank statement, this transaction forms part of Bank reconciliation statement.
For example, ABC Co. receives a cheque of Rs. 10,000 & records the same on the debit side in bank column of cash book. The cheque has not yet been deposited in bank & so by the amount of cheque bank balance as per cash book is more than that as per pass book.
Regards