A credit balance in cash book indicates ___.

Bank Balance

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Cash at bank

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Bank Overdraft

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Bank Underdraft

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Solution

The correct option is C
Bank Overdraft

A credit balance in cash book indicates a bank overdraft.

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Similar questions

Q. Credit balance shown by a bank column in cash book is ______.

A debit balance in bank column of cash book is always equal to the credit balance in the account of Mr. X in the books of bank.

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Q. Credit balance of bank account in cash book shows ______________.

State whether the following Statements are True or False.

1) Bank Reconciliation Statement is prepared by Bank.
2) Bank Reconciliation Statement is prepared at the end of stipulated period.
3) Overdraft facility is allowed to proprietors personal account
4) Debit balance of Pass Book represents overdraft
5) Credit balance of Bank column of Cash Book represents the balance as per Cash book.
6) Bank charges debited by Bank increases bank balance in the Pass Book.
7) Interest credited in Pass Book is an income to the Customer.
8) Bank Reconciliation Statement is prepared to detect the errors the takes place in accounting

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A credit balance in cash book indicates ___.

The correct option is C Bank Overdraft A credit balance in cash book indicates a bank overdraft.

The correct option is C
Bank Overdraft

A credit balance in cash book indicates a bank overdraft.