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Businesses maintain cash books to record both cash as well as bank transactions.A Cashbook has a cash column that shows cash available with the business and a bank column that shows cash at the bank. Bank also keeps an account for every customer in their books. All the deposits are recorded on the credit side of the customer’s account and withdrawals are on the debit side of their account. An account statement is sent regularly to the customers by the bank.
Sometimes the bank balances as per the cash book and bank statement doesn’t match. In case the balance available in the passbook doesn’t match the bank column of the cash book, the business should identify the reasons for the same.



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