Chapter bank-reconciliation-statement: Bank Reconciliation Statement - Assertion-Reason Quiz

Assertion (A): A cheque received from a customer and recorded in the cash book but not deposited in the bank will cause the cash book balance to be higher than the passbook balance. Reason (R): The cash book records an increase in bank balance upon receipt of the cheque, but since the cheque was never deposited, the bank has no knowledge of this transaction and does not credit the passbook.

Review the options below and lock in the strongest answer.