True / False

Overdraft as per the pass book is less than the overdraft as per cash book when there are cheques deposited but not collected by the banker.

ATRUE
BFALSE
Correct Answer

Solution

Cheque deposited but not collected by the banker are the cheques directly received by the bank. Such cheques increases the positive balance in the pass book. This, in turn, reduces the overdraft as per pass book and makes it less than the overdraft as per cash book as such cheques have not been debited in the cash book yet.


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