Question

Why cash book always shows a debit balance ???

Answer 1

When debit balance is more than the credit balance, it is a debit balance/overdraft as per Pass Book. ... When the customer deposits any amount into the bank, his bankbalance increases, i.e., Cash Book(bank column) shows a debit balance.

Answer 2

Here is your answer........

It should be noted that the tatol of the debit side of the cash book always exceeds the credit side.It is because business cannot pay more cash than what he has got.If the money is paid by borrowing from someone,it will first be recorded on the receipts side and only then it will be shown on the paymen side.Hence,the cash book always shows a Debit balance or at the most nil balance but can never show a credit balance.