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

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