Cheques paid into bank but not yet collected
The cheques paid into bank for collection but not credited into the account of the customer, because the cheque is
- not collected and credited till that date.
- collected but the bank staff has forgotten to make entry.
- collected but credited to wrong account.
- collected for No.I account but credited to No.II account of the same customer.
As soon as the cheques are sent to the bank, entries are made in the debit side of the cash book (bank column). But, usually bank credit the customer’s account only when they have received payment from the bank concerned, in other words, when the cheques have been collected. Hence, there will be a time gap between the depositing of the cheques and the collection by the bank.
For example, ABC Company Limited deposited a cheque on january 01, 2000 for a sum of $ 1,000. The cheque was collected on June 30, 2000. In case the bank sends a statement of account upto May 31, 2000, there will be a dissimilarity of $ 1,000 between the balance shown by the cash book and the pass book.