A bank pass book is a copy of

Question

A bank pass book is a copy of

1. A. The cash column of a customer's cash book
2. B. The bank column of a customer's cash book
3. C. The customer account in the bank's ledger (Correct answer)
4. D. The debtor's account in the bank's ledger

Correct Answer

Option C — The customer account in the bank''s ledger

Detailed Solution & Explanation

The correct answer is The customer account in the bank''s ledger.

Key Points

• A bank passbook is a copy of the customer's account as maintained in the bank's ledger.
• It shows all transactions from the bank's perspective of the customer's account.

Additional Information

• The passbook is the bank's record of the customer's account, so it is a copy of the customer's account in the bank's ledger — written from the bank's point of view.
• That is why the two records mirror each other: a deposit is a debit in the firm's cash book but a credit in the passbook.
• For the bank, a customer's deposit is a liability, since the money is owed back on demand.
• The bank reconciliation statement explains the difference between the two balances at a given date.