Q128
A credit balance in cash book indicates
A.
Bank balance
B.
Cash at bank
C.
Bank overdraft
AnswerD.
Bank underdraft
Answer: Option C
Solution
Answer: Option C
Solution:
A credit balance in cash book indicates Bank overdraft. Overdrafts are where the bank account becomes negative and the businesses in effect have borrowed from the bank. This is shown in the cash book as a credit balance.