Page 90 - DCOM208_BANKING_THEORY_AND_PRACTICE

Unit 6: Type of Deposit Account

account through Pass Book. It is the customer’s duty to check the entries and immediately Notes
inform the bank of any error that he may have noticed. The form of the Pass Book is given as:
Table 6.1: Format of a Pass Book
Messers …………………………..

Date Particulars Withdrawals Dr. Deposits Cr. Dr or Cr Balance

Source: http://www.du.ac.in/fileadmin/DU/Academics/course_material/EP_14.pdf
Cash book is a supplementary book which records the receipts and payment of cash. With the
help of cash book cash and bank balance can be checked at any point of time.

Difference between Pass Book and Cash Book

Any transaction has to be recorded in both the books i.e. Cash Book and Pass Book. But sometimes,
it happens that a bank transaction is recorded only in one book and not recorded simultaneously
in other book. This causes difference in the two balances.

Table 6.2: Differences between Cash Book and Pass Book

Cash Book Pass Book
1. It is written by the depositor. It is written by the bank but remains in the
depositor's ownership.
2. Money deposited is recorded on the debit Money deposited is entered on the credit
side and money withdrawn on credit side. side and withdrawn on the debit side.
3. A cheque deposited for collection is It is recorded on the date when it is actually
recorded on the date of deposit. collected from the debtor's bank.
4. A cheque when issued to a creditor is It is recorded when it is paid by the bank to
recorded on the date of issue. the creditor.
5. Its debit balance shows cash at bank and Its debit balance shows bank overdraft and
credit balance shows bank overdraft. credit balance shows cash at bank.

6.2.4 ATM cum Debit Card

A card used in an Automated Teller Machine (ATM) to access a credit or a debit account to
complete banking inquiries and fund transfers between accounts.

How Does an ATM card Work?

When a debit card is used, the transaction debits the amount of the transaction from the checking
account, generally on the same day. A debit card can be used to get cash from ATM machines or
have it swiped like a credit card at shops or restaurants or swipe it through a pay phone to make
a call.

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