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Question -

State the causes of difference occurred due to time lag.




Answer -

The following are the causes of difference occurred due to time lag

  1. Cheque issued by the firm is not yet presented for payment.
  2. Cheque deposited into the bank but yet to be realized.
  3. Direct debits done by the bank on behalf of the customer.
  4. Amount deposited directly into the bank account.
  5. Interest and dividends that are not collected by the bank.
  6. Direct payments made by the bank on behalf of the customers
  7. Cheques that are deposited or bills discounted which is dishonoured

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