Question

Select the most appropriate answer from the alternatives given below and rewrite the sentence

Overdraft means _______ balance of Pass Book.
a) debit
b) credit
c) closing
d) opening

Answer 1

Overdraft means debit balance of Pass book.

Explanation:
The debit balance as per Pass Book indicates the amount withdrawn in excess of deposits from a bank. Deposits are recorded on the credit side of the Pass Book and withdrawals are recorded on the debit side. Overdraft means the amount withdrawn in excess of deposits, which means the debit side exceeds the credit side. Thus, overdraft means debit balance of the Pass Book.