Question

When a cheque is deposited ____________ .

• A. bank pass book will be credited
• B. bank pass book will be debited
• C. bank column in cash book is debited
• D. bank column in cash book is credited

Answer 1

The correct option is C bank column in cash book is debited

The journal entry in the books of the account holder when a cheque is deposited is as follows :

Bank A/c. ................................Dr.

To Receivable A/c.

So, as seen from above entry the bank column in the cash book would be debited when a cheque is deposited. Until The Cheque gets cleared, No entry is made by bank in pass book. Generally, it takes 2-3 days in clearance of cheque. So, as soon as cheque is deposited, Bank column in cash book is debited.