Cause of differences between passbook and cash book
Cheques issued but not yet presented for payment in the bank.
Cheques paid or deposited but not yet collected and credited by the bank. Bank charges not entered in the Cash Book.
Interest credited by bank but not yet entered in Cash Book.
Expenses directly paid by bank on behalf of customer but not yet recorded in cash book.
Income directly collected by bank on behalf of customer but not yet recorded in cash book.
Amount directly deposited into bank by debtors but not entered in Cash Book.
Cheque deposited into the bank but dishonored by the bank.
Error and Omission.
Due to advancement of technology, the electronic transfer will change the balance as passbook but balance as per cash book will remain unaffected.
