Question

What do you understand by the following? (a) Debit balance as per cash book. (b) Credit balance as per cash book. ​

Answer 1

Answer:

Correct option is C)

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.