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Receipts and Payments Account

Entry in debi...

Question

Entry in debit side of bank pass book implies ____________.

A

Cash withdrawn

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B

Cash/ cheque deposited in Bank

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C

Business Receipts

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D

Personal Receipts

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Solution

The correct option is C Cash withdrawn
When cash is withdrawn from Bank the entry for the same is as follows :
Cash A/c. ........................... Dr.
To Bank A/c.
So the bank column of the cash book would be credited with the amount withdrawn, but as the pass book is an opposite record of the cash book, in the pass book the said entry for cash withdrawal would be debited.

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