A cheque of ₹25,000 was issued and also presented in same month, but erroneously recorded on the debit side of the cash book. Difference from pass book =

1. Correct treatment: cheque issued should be credited in cash book, reducing balance by ₹25,000. 2. Wrong treatment: recorded as debit increases cash book balance by ₹25,000. 3. Total deviation between correct and wrong cash book = 25,000 (missed credit) + 25,000 (wrong debit) = ₹50,000. 4. Pass book has correctly recorded the cheque as paid, so the gap is ₹50,000. _Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", Practice T/F 13_