What is the significance of debit and credit balances of Cash book
Answers
Answered by
5
Answer:
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.
Answered by
1
Explanation:
The passbook is made from the view point of the bank hence customer depositing money is a liability to the bank and is credited. Therefore when the balance is unfavourable it shows a debit balance because they will receive money from the customer. The debits and credit of pass book and cash book are opposite.
Mark as brainliest and your answer is above
Hope it is helpful for you and for all.
Similar questions