Question

Any decrease in the bank balance is recorded on ______ side of Cash Book and in _______ Column of Pass Book.

A Debit; Credit Correct Answer Incorrect Answer
B Credit; Debit Correct Answer Incorrect Answer
C Debit, Debit Correct Answer Incorrect Answer
D Credit, Credit Correct Answer Incorrect Answer

Solution

Cash book is prepared by Companies. As per the rule, Debit what comes in- credit what goes out. Journal entry would be – cash book A/c Debit and Bank A/c will be credited. Opposite entries is passed in pass Book

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