Professional Documents
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A pass book is a booklet wherein a banker records his customers account as it appears in his ledger.
A pass book is maintained in the form of a ledger account with debit entries on the left hand side and credit entries on the right hand side.
All the amounts deposited by a customer are credited and the cheques paid by banks against his account are debited.
The proper function of pass book is to constitute a conclusive and unquestionable record of transactions between the banker and customer and it should be recognised as such
The wrong entry favourable to a customer constitutes a settlement of account only when.
a.
b.
c. d.
The customer believes that it is true, The customer draws a cheque in good faith and in complete reliance on the larger credit balance The wrong entry is communicated to the customer In any case a customer can not rely upon the fictitious entry made in pass book by a bank employee.
one will not be permitted to profit from a mistake of which one has been aware
1.
2. 3.
4.
Longer the duration, lesser the chances of rectifying a mistake in a pass book A pass book belongs to a banker There is a statutory duty on the part of a customer to examine his pass book in India. If a customer takes up the duty of examining his pass book, it operates against him in case he is careless.
1.
a. b.
c.
d.
A wrong entry in a pass book favourable to a customer constitutes a settlement of account provided: The customer acts upon it immediately. The customer acts upon it in good faith and without negligence The customer has altered his position by relying upon it (b) and (c) together but not (a)
2. The following one does not constitute a settlement of account as far as a pass book is concerned a. A wrong entry favourable to a customer b. A wrong entry favourable to a banker c. A fictitious entry d. (a) and (b) together.