Question

The debit balance of the bank account as per the cash book should be equal to the credit balance of the account of the business in the books of the bank.

• A. True
• B. False

Answer 1

The correct option is A True

True.

The debit balance of the cash book (bank column) should be equal to the credit balance in the account of the business in the books of the bank (pass book/ bank statement). This is because, pass book (bank statement) is a copy of the customer's account in the books of bank from the point of view of the bank. So our debit balance is shown as credit balance by them.