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State whether the following statement is True or False with reasons: Cheques deposited into bank but not yet cleared appears in the Pass Book only. - Book Keeping and Accountancy

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Question

State whether the following statement is True or False with reasons:

Cheques deposited into bank but not yet cleared appears in the Pass Book only.

Options

  • True

  • False

MCQ
True or False

Solution

This statement is False.
Cheques deposited into bank should be recorded first on the debit side of cash book and after receiving the amount by bank, bank will credit it. Thus, uncleared cheques appear in the cash book only.
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Chapter 6: Bank Reconciliation Statement - Exercises [Page 206]

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Balbharati Book Keeping and Accountancy [English] 11 Standard Maharashtra State Board
Chapter 6 Bank Reconciliation Statement
Exercises | Q 6. 1. | Page 206

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