Question

Interest allowed by bank will be recorded in cash book in *

Bank column on debit side
Bank column on credit side
Cash column on credit side
Cash column on debit side​

Answer 1

Answer:

cash column in debit side

Answer 2

Interest allowed by the bank will be recorded in the cash book in the Bank column on the debit side.

• Bank column on the debit side is the correct option.

• Interest allowed by Bank will be recorded on the Debit side of the Cash Book in Bank Column because the amount is directly deposited by customers into Bank but no information received will increase the Passbook balance. When money is withdrawn from Bank then the bank credits the account of the customer.

• A Cash Book is a deputy book which records the receipts and payment of cash and with the assistance of a cash book cash and bank balances can be checked at any fact of moment.

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