State whether the following statement is True or False.
Overdraft as per pass book means credit balance as per pass book.

True

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False

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Solution

The correct option is B False
False. Overdraft means negative balance. Passbook is debited when balance reduces and credited when balance increases. So, overdraft is shown by debit balance in the passbook and not by credit balance.

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Similar questions

Q. State whether the following statement is True or False.
Bank balance as per pass book means debit balance as per pass book.

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Bank balance as per cash book means debit balance as per cash book.

Q. State whether the following statement is True or False.
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State whether the following Statements are True or False.

1) Bank Reconciliation Statement is prepared by Bank.
2) Bank Reconciliation Statement is prepared at the end of stipulated period.
3) Overdraft facility is allowed to proprietors personal account
4) Debit balance of Pass Book represents overdraft
5) Credit balance of Bank column of Cash Book represents the balance as per Cash book.
6) Bank charges debited by Bank increases bank balance in the Pass Book.
7) Interest credited in Pass Book is an income to the Customer.
8) Bank Reconciliation Statement is prepared to detect the errors the takes place in accounting

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State whether the following statement is True or False.Overdraft as per pass book means credit balance as per pass book.

The correct option is B FalseFalse. Overdraft means negative balance. Passbook is debited when balance reduces and credited when balance increases. So, overdraft is shown by debit balance in the passbook and not by credit balance.

State whether the following statement is True or False.
Overdraft as per pass book means credit balance as per pass book.

The correct option is B False
False. Overdraft means negative balance. Passbook is debited when balance reduces and credited when balance increases. So, overdraft is shown by debit balance in the passbook and not by credit balance.