Question
Assertion (A) : When the cheques are not presented for payment, favourable
balance as per the cash book is less than that of the pass book.
Reason (R) :  If an entry of payment has been recorded in the pass book but not in the cash book, then the balance of pass book will be less than of cash book.

Answer

Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Similar questions

Assertion (A) - It is not necessary to match “revenues” of the period with the expenses” of that period to determine correct profit or loss for the accounting period.
Reason (R) – Therefore, it is not relevant when the payment was made or received. All adjustments are made for all outstanding expenses and prepaid expenses.
Assertion (A): Trial Balance is an account, prepared with debit and credit balances of ledger accounts.
Reason (R): Trial Balance is prepared to test the arithmeticalaccuracy of book of accounts.
Assertion (A): Unfavourable balance as per Pass Book is Debit Balance.
Reason (R): Favourable Balance as per Cash Book is Debit Balance.
Assertion (A) : The main purpose of cost accounting is to ascertain total cost and per unit cost of goods produced.
Reason (R): The main purpose of financial accounting is to record the business transactions and to ascertain profit or loss and the financial position of the business.
Assertion: Journal Proper is a residuary book which is used for recording those transactions which are not recorded in any of the other books of original entry.
Reason:Journal proper or General Journal is a simple book of chronological records of business transactions. This book of original entry (simple journal) in which miscellaneous credit transactions which do not fit in any other books are recorded.
Assertion (A): For transactions which reduce the Cash Book balance, Passbook must be decreased for the purpose of reconciliation of BRS.
Reason (R): If BRS is prepared with Passbook Balance.
Assertion (A) : All financial transactions relating to the business are first of all recorded in 'Ledger'.
Reason (R): Separate accounts are opened in the Ledger for purchases, sales, expenses, incomes, assets etc.
Assertion - Depreciation is an expense which does not involve cash.
Reason - Depreciation is a gradual fall in the book value of tangible assets either due to use or with the efflux of time.
Assertion (A) – Double entry system is a scientific System
Reason (R) – it helps to know the financial position of business.
Assertion (A) : Charging depreciation is important to represent true and fair financial position.
Reason (R) : If depreciation on assets is not provided for, then the assets will be overvalued.