Question

Debit balance in the cash book is equivalent to
a. Drawer b. Bank
c. Drawee
d. None of these​

Answer 1

The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals. ... On the other hand, the credit balance as per the cash book indicates bank overdraft.