Question

Suppose the bank account in your ledger shows a credit balance. What will be the effect of following transactions in your pass book balance. (i) One of your customers deposit some amount directly into your bank account. (ii) Bank Charged interest on the amount overdrawn by you. (iii)A cheque deposited last week by you has been dishonoured. Bank charged some amount on account of it. (iv)Under your standing instructions Bank paid your insurance premium to the Insurance Company.

Answer 1

Answer:

1)credit balance of bank will increase

2) debit balance will increase

3)debit balance will increase

4) credit balance will increase