Question

Credit balance in the pass book represents _________.

• A. overdraft
• B. bank balance
• C. loan borrowed
• D. Nil balance

Answer 1

The correct option is B bank balance

The pass book is a copy of the account statement as maintained by the bank. So if the pass book reflects a credit balance it means that the account is in the nature of a creditor/payable for the bank and it would be the opposite for the account holder.

So from the account holder's point of view he would be having a positive/favourable/bank balance in his account in both the above situations whereas for the bank it would be the opposite.