Question

_______ column of cash book can have credit opening or closing balance.

• A. Cash
• B. Discount
• C. Bank
• D. (B) and (C)

Answer 1

The correct option is C Bank

The bank column is balanced in the same way as the cash column.

However, in the bank column, there can be credit balance also because of overdraft taken from the bank. Overdraft is a situation when cash withdrawn from the bank exceeds the amount of deposit. Entries in respect of cheque received should be made in the bank column of the cash book. Bank column of cash book can have a credit opening or closing balance.