Question

Answer in one sentence only.

What does the debit balance of Cash Book indicate?

Answer 1

The debit balance of a Cash Book indicates the favourable or positive balance. All the receipts of the business are recorded on the debit side of the Cash Book, whereas payments are recorded on the credit side. Thus, when receipts exceed the payments of a business, the balance is termed as debit balance as per the Cash Book or favourable balance.