Which of the following transactions will result in disagreement between the cash book and the bank statements?

A. selling of goods on credit to a customer
B. withdrawal of goods by the proprietor for his personal use
C. cheque paid directly into the bank account by a customer
D. omission of purchases received from a supplier on credit

Correct Answer: Option C

C. cheque paid directly into the bank account by a customer

Explanation

A cheque payment is recorded in the cash book when the cheque is despatched. The bank only records such a cheque when it is paid by the bank, which may be several days later. Items such as interest may appear on the bank statement but are not recorded in the cash book as the business is unaware that they have arisen.