Question

'Cash books always shows a debit balance''.How far is this statement true and why

Answer 1

The above statement is true cash book always be debit balance

Reason : Cash is the physical currency where we spent what we have in hand . we cant spend excess of what we have in hand . if cash balance is in credit that means we spending money without cash currencies which impossible while we do cash transactions . therefore cash book always have debit balance ,

i have tried to explain in simpler words

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