(i) Insurance Premium
(ii) Telephone Bills

Causes of disagreement between the balances shown by the cash book and bank statement.
(i) Cheques issued but not yet presented for payment.
(ii) Cheques paid into bank for collection but not yet collected.

(i) Bank overdraft is an amount drawn over and above the actual balance kept in the bank account.
(ii) This facility is available only to the current account holders.
(iii) Interest will be charged for the amount overdrawn i.e., overdraft.

(a) Cheques issued but not yet presented for payment: When the cheques are issued by the business, it is immediately entered on the credit side of the cash book by the business. But, this may not be entered in the bank statement on the same day. It will be entered in the bank statement only after it is presented with the bank.
For example, the balances as per cash book and bank statement are Rs. 20,000 for X & Co. X & Co. issued a cheque in favour of Y & Co for Rs. 10,000, on 27^th March 2017. So, X & Co's cash book is credited with Rs. 10,000 on 27^th March 2017.
(b) Cheques deposited into bank but yet credited: When the cheques are deposited into bank, the amount is debited in the cash book on the same day. But, these may not be shown in the bank passbook on the same day because these will be entered in the bank statement only after the collection of the cheques.
For example, the balances as per cash book and bank statement are Rs. 20,000 for X & Co. X & Co. receives a cheque on 25^th March 2016, from ABC Limited for Rs. 5,000. On the same day, X & Co, debits its cash book with Rs. 5,000.
(c) Bank charges and Interest on loan and overdraft by the bank: The bank has to cover the cost of running the customer's account. So debit is given to the account of the business towards bank charges.
For example, the opening balance as per cash book and the bank statement as on 1^st March 2017 is Rs. 7,000. Bank debits for bank charges Rs. 300 as on 27th March 2017. But there is no entry for the same in the cash book as on such date.

(i) The debit balance as per the cash book means the balance of deposits held at the bank.
(ii) Such a balance will be a credit balance as per the passbook.
(iii) Such a balance exists when the deposits made by the firm are more than its withdrawals.
(iv) It indicates the favourable balance as per cash book or favourable balance as per the passbook.
(v) In other words, the excess amount withdrawn over the amount deposited in the bank. It is also known as unfavourable balance as per cash book or unfavourable balance as per pass book.

(i) To identify the delay in the clearance of cheques.
(ii) To ascertain the correct balance of bank column of Cash book.
(iii) To discourage the accountants of the business as well as bank from misusing funds.