Question

Answer in one Sentence only.

What is the balance of Cash A/c?

Answer 1

Total of the debit side of the Cash Book or Cash A/c always exceeds its credit side because payments of a business cannot exceed the receipts amount. So, the Cash Book shows a debit balance. When payments are exactly equal to the receipts of the business, it will show zero balance, but it can never show the credit balance. Thus, the Cash Book will always show debit balance or zero balance.