Question

Unfavourable balance as per pass book means which of the following?

• A. Dr. balance in cash book
• B. Cr. balance in pass book
• C. Bank overdraft
• D. None of the above

Answer 1

Answer: (C)

Bank overdraft

Unfavourable balance as per pass book means debit balance or overdraft in the passbook. Passbook is a copy of the customer's account with the bank. It is prepared by the bank with the point of view of the bank. When we take a loan from the bank, we become debtor (asset) for the bank. So, the bank represents it by showing a debit balance overdraft balance in our passbook.