Question

Select the most appropriate alternatives from those given below :

Cash column of cash book can never have ________ balance.
a) credit
b) debit
c) zero
d) none of the above

Answer 1

Cash column of cash book can never have credit balance.

Explanation:
The total of the debit side of the Cash Book always exceeds the credit side because a businessman cannot pay more than the currently available cash. Cash payments cannot exceed the cash receipts. Therefore, the Cash Book can never have credit balance.
The cash column of the Cash Book can have zero balance and it is also possible that the cash payments are equal to the cash receipts.