Debit balance in bank passbook is called ____________.

Debit balance

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Credit balance

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Balanced

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Overdraft

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Solution

The correct option is A Overdraft
Bank overdraft is the amount withdrawn by business from bank in excess of deposits up to a prescribed limit. This facility is provided to the current account holders for which the bank charges a certain amount. Bank overdraft is also known as credit balance as per cash book and debit balance as per the pass book.

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Similar questions

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

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.

(R s .5000)

R s .500

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