The credit balance of bank account indicates________.

Amount payable by the bank

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Amount payable to the bank

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Cash at bank

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Loan from bank

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Solution

The correct option is B Amount payable to the bank
The credit balance of bank account indicates amount payable to the bank. Credit balance of bank account means bank overdraft and it comes on balance sheet under liabilities or assets side but with minus sign.

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Similar questions

	(Rs)
Bills accepted	$1, 05, 000$
Discount received	$17, 000$
Purchases returns	$9, 000$
Return inwards	$12, 000$
Cash paid to accounts payable	$50, 000$
Bills receivable endorsed to creditor	$45, 000$
Bills dishonoured	$17, 000$
Bad debts	$14, 000$
Balance of accounts payable (closing)	$85, 000$
Credit purchases	$2, 15, 000$

4000

10 %

5

Prepare the bills payable account from the following and find out missing figure if any :

	Rs
Bills accepted	1,05,000
Discount received	17,000
Purchases returns	9,000
Return inwards	12,000
Cash paid to accounts payable	50,000
Bills receivable endorsed to creditor	45,000
Bills dishonoured	17,000
Bad debts	14,000
Balance of accounts payable (closing)	85,000
Credit purchases	2,15,000

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