42
Question
When money is withdrawn from the bank, the bank_________the account of the customer.
When money is withdrawn from the bank, the bank_________the account of the customer.
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Solution
The correct option is C Debit
Money kept in Bank account is an asset for us but it is a liability for the bank. Hence, for the bank, any decrease needs to be debited and any increase needs to be credited. When the money is withdrawn from the bank account, the business credits it because there is a decrease in the asset. But, the bank will debit it because it is a decrease in their liability.Thus, the correct option is B.
Money kept in Bank account is an asset for us but it is a liability for the bank. Hence, for the bank, any decrease needs to be debited and any increase needs to be credited. When the money is withdrawn from the bank account, the business credits it because there is a decrease in the asset.
But, the bank will debit it because it is a decrease in their liability.
Thus, the correct option is B.
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