Credit balance of bank account in cash book shows ______________.

Overdraft

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Cash deposited in our bank

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Cash withdrawn from bank

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None of the above

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Solution

The correct option is B Cash deposited in our bank
The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals.

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Similar questions

When bank column of a cash book shows a credit balance, what does it mean?

Q. Cash column of a Cash-book may show a Debit or Credit Balance.

The cash book shows a balance of Rs.11,000 which was different from the balance as per bank statement. The difference is found to be due to a credit entry in pass book amounting to Rs.2,000 for direct payment by a customer in bank account. What would be the balance as per bank pass book?

The cash book shows a bank balance of Rs. 8,000. On comparing the cash book with passbook the following discrepancies were noted:
(a) Cheque deposited in bank but not credited Rs. 3,000
(b) Cheque issued but not yet present for payment Rs. 1,500
(c) Insurance premium paid by the bank Rs. 1,500
(d) Bank interest credit by the bank Rs. 400
(e) Bank charges Rs. 100
(f) Directly deposited by a customer Rs. 4,000

Find the balance as per pass book.

A debit balance in bank column of cash book is always equal to the credit balance in the account of Mr. X in the books of bank.

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Credit balance of bank account in cash book shows ______________.

The correct option is B Cash deposited in our bankThe debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals.

The correct option is B Cash deposited in our bank
The debit balance as per the cash book means the balance of deposits held at the bank. Such a balance will be a credit balance as per the passbook. Such a balance exists when the deposits made by the firm are more than its withdrawals.