Interest on bank balance is recorded on __________ side of pass book.

debit

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credit

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both side

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any side

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Solution

The correct option is B credit
The journal entry in case of interest on bank balance in the books of account holder is as follows :
Bank A/c. ...................Dr.
To Interest on bank balance A/c
In the cash book the above entry would be recorded on the debit side and as we know that pass book is an exact opposite record of the cash book so, direct deposit by the customer would be recorded on the credit side of the pass book.

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Similar questions

Q. Interest on bank overdraft is recorded on ___________ side of pass-book.

Q. Cash Book shows a balance of ₹ 12,500. On comparing the Cash Book with the Pass Book, following discrepancies were noted:

		₹
(i)	Cheques issued but not yet presented for payment.	6,000
(ii)	Cheques deposited in the bank but not collected.	9,000
(iii)	Bank paid insurance premium.	5,000
(iv)	Bank charges.	300
(v)	Directly deposited by a customer.	8,000
(vi)	Interest on investment collected by bank.	2,000
(vii)	Cash discount allowed of ₹ 200 was recorded on the debit side of the Bank column.

Prepare Bank Reconciliation Statement.

Q. Overdraft as per pass book of P&Co. was Rs.

60, 000

.
-The credit side of bank column of cash book was under cast by Rs.

200

.
-Interest on bank loan Rs.

4, 000

and bank charges of Rs.

1, 150

were not recorded in cash book.
Overdraft balance as per cash book should be _________.

Q. Direct deposit by a customer will be recorded on ___________ side of the pass book.

Give on Word/Term or phrase which can substitute each of the following statements.

1) Statement showing the causes of disagreement between the balance of Cash Book and Pass Book
2) The account on which overdraft facility is allowed by Bank.
3) Excess of total of debit side over total of credit side of Cash Book Bank column.
4) An unfavorable balance shown by the Pass Book
5) A copy of customer’s account issued by the Bank
6) Booklet or a Statement which is used to record the banking transactions.
7) Credit balance of Bank Column of the Cash Book
8) Refusal by Bank to make the payment of cheque

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