Question

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

When cheque is ________ into Bank, cash Book is debited
a) issued
b) deposited
c) dishonoured
d) written

Answer 1

When cheque is deposited into Bank, cash Book is debited.

Explanation:
All the receipts of a business are recorded on the debit side of the Cash Book, whereas all the payments are recorded on the credit side. A deposited cheque represents a receipt for the business, thus, recorded on the debit side of the Cash Book, whereas, on the other hand, an issued cheque is recorded on the credit side of the Cash Book. Thus, when Cash Book is debited, then it implies that the cheque is deposited into the bank.