Question

Favourable balance as per cash book means which of the following?

• A. Cr. balance in cash book
• B. Dr. balance in cash book
• C. Bank overdraft
• D. Dr. balance in pass book

Answer 1

The correct option is B Dr. balance in cash book

Favourable balance in the cash book means positive balance. Such balance is represented by debit balance of the cash book. The cash book is debited when cash comes in and credited when cash goes out. So, when the cash book balance increases, or is positive, it is shown as debit or favourable balance.