Relationship Between Cash Book and Pass Book

Relationship between Cash Book and Pass Book

The traders record all the amounts or cheques deposited in the bank in the debit side of his Cash Book in bank column and whatever amount he withdraws from bank in cash or pays through cheque to other parties, he records them in the credit side of the Cash Book in bank column.

Bank also credits the customer's (Trader's) Account for the amount deposited by the customer and debits him for the amount withdrawn by him in his main Ledger. In other words, it can be summarised as under:

1. What is shown on the debit side of the Cash Book (Bank Column) appears on the credit side of the Bank Pass Book or Bank Statement.

2. What is shown on the credit side of the cash book (Bank Column) appears on the debit side of the Bank Pass Book or Bank Statement.

3. (i) When the Cash Book (Bank Column) shows debit balance the Pass Book (Bank Statement) shows credit balance.

    (ii) When the Cash Book (Bank Statement) shows credit balance (i.e., overdraft), the Pass Book (Bank Statement) shows debit balance (i.e., overdraft)

Dr. Balance as per Cash Book = Cr. Balance as per Pass Book

Cr. Balance (i.e., Overdraft) as per Cash Book = Dr. Balance (i.e., Overdraft) as per Pass Book

  

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