Question

1. The debit balance of passbook is
a) Plus balance
b) Minus balance
c) Either plus or minus
d) Neither plus nor minus​

Answer 1

Explanation:

Correct option is

A

bank overdraft

Bank statements usually show a debit balance which indicate a positive balance. Overdrafts are where the bank account becomes negative and the businesses in effect have borrowed from the bank. In the bank statement, where the balance is followed by Dr. (or sometimes OD) means that there is an overdraft and called debit balance as per passbook. An overdraft is treated as negative figure on a bank reconciliation statement.