Question

WHICH OF THE FOLLOWING MAY HAVE A DEBIT OR CREDIT BALANCE? *



BILLS PAYABLE ACCOUNT.

CREDITORS.

PLANT ACCOUNT.

BANK ACCOUNT.​

Answer 1

The Correct Answer is...

► BANK ACCOUNT

Explanation:

A Bank Account may both a debit balance and a credit balance.

A Debit Balance refers to a decrease in the balance in an account and a Credit Balance refers to an increase in the balance in an account. One of the above options, a Bank Accounts can be a debit balance or credit balance in a bank account because when a debit balance is being shown in a bank account, it means that some amount has been withdrawn from that bank account and if the bank account If the credit balance is shown, then it means that some amount has been deposited in that account.

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