Question

Normally, the cash book shows a debit balance. Pass book shows_________balance.

• A. Credit
• B. Debit
• C. Nil
• D. No effect

Answer 1

Answer: (A)

Credit

Passbook is a copy of account of the account holder in the books of the bank.

The favorable balance of cashbook is debit balance while the favorable balance of passbook is Credit balance. Credit balance as per passbook means amount lying deposited in bank which is payable by the bank to the customer. Since the amount is receivable by the account holder, it is an asset for the account holder which therefore shows a debit balance.