Question

When Bank Reconciliation Statement is prepared with credit balance as per Pass Book, the balance derived will be:

• A. Debit Balance as per Cash Book
• B. Credit Balance as per Cash Book
• C. Debit Balance as per Bank Book
• D. Either (a) or (b) is possible

Hint:

A credit balance in the Pass Book always corresponds to a debit balance in the Cash Book.

Answer 1

The Correct Option is A

A Credit Balance in the Pass Book indicates a favorable balance (amount deposited). The corresponding balance in the Cash Book would be a Debit Balance, as the two records are mirror images of each other.