Question

A debit balance in the depositor's cash book will be shown as ___________.

• A. a debit balance in the bank statement
• B. a credit balance in the bank statement
• C. an overdrawn balance in the bank statement
• D. none of the above

Answer 1

Answer: (B)

a credit balance in the bank statement

A bank statement is an extract from bank ledger and hence it is to be read from bank's view point which shows a credit balance in the pass book.

It is the position of customer in bank records. So if a debit balance is shown in depositor's cash book an opposite position will be shown in the bank books i.e credit balance.