Credit balance shown by a bank column in cash book is ______.

Cash

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Overdraft

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Cash credit

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None of the above

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Solution

The correct option is B Overdraft
The debit balance as per the cash book means the balance of deposits held at the bank.
It indicates the favourable balance as per cash book or favourable balance as per the passbook. On the other hand, the credit balance as per the cash book indicates bank overdraft.

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