Question

Q.48. What does 'Overdraft Balance
as per Cash Book means ?
O (A) Credit balance in the Cash Book
O (B) Credit balance in the Pass Book
O (C) Debit balance in the Cash Book
O
(D) Favourable balance in the Cash
Book
answer .me fast please​

Answer 1

Answer:

A

Explanation:

Credit balance in the cash book

The cash book is an account statement as maintained by the account holder. So if the cash book reflects a credit balance it means that the account is in the nature of a creditor/payable for the account  holder and  it would be the opposite for the bank.

The pass book is a copy of the account statement as maintained by the bank. So if the pass book reflects a debit balance it means that the account is in the nature of a debtor/receivable for the bank and  it would be the opposite for the account holder.

So if there is unfavourable balance as per cash book it means that the cash book is showing a credit balance which is also known as bank overdraft.