Question

Discuss the reasons due to which cash book and passbook balances may not match. Is there a method to address the issues related to these differences other than preparing a bank reconciliation statement?

Answer 1

In a cashbook, all cash transactions or kept inside

In a passbook, in the other hand, all deposits & withdrawals are kept inside.

The difference is that one only focuses on cash, while the other can focus on cash, check, etc. A way to address the issue is to just use one book, which contains every single statement.

hope this helps