Bank Reconciliation Statement · Class 11 · CBSE · Commerce Accountancy
A favourable balance given in the cash book means which of the following?
Practice question from Bank Reconciliation Statement (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-97C9B1
A favourable balance given in the cash book means which of the following?
- A.Debit balance in the cash book indicating bank overdraft
- B.Credit balance in the cash book indicating bank overdraft
- C.Debit balance in the cash book indicating bank deposit/cash at bankCorrect answer
- D.Credit balance in the cash book indicating cash in hand
Solution
A favourable balance in the cash book represents a debit balance, which signifies that the business has funds deposited in the bank (bank balance).
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