Question

Cash book will have never be a credit balance. Why?

Answer 1

Answer:

The cash book is balanced in the same way as an account in the ledger. But it may be noted that in the case of the cash book, there will be always a debit balance because cash payments can never exceed cash receipts and cash in hand at the beginning of the period.

Answer 2

Answer:

The cash book is balanced in the same way as an account in the ledger. But it may be noted that in the case of the cash book, there will be always a debit balance because cash payments can never exceed cash receipts and cash in hand at the beginning of the period.