Question 26 of 50intermediate💡 UnderstandTrue / False1 mark
When payments made by the bank as per the standing instructions of the customer, the balance in the passbook will be more when compared to the cash book.
Correct Answer
False
Exercise: Test Your Understanding - III | Q: 9 | (Page 14)
For More Understanding
Explanation
False. According to the provided context (Section 5.1.1(f)), when the bank makes payments as per standing instructions (like insurance premium or rent), the bank debits the customer's account immediately. As a result, the balance as per the bank passbook would be less than the one shown in the cash book, not more.