Debit side of Bank Pass book corresponds to___________?
Correct answer: D. Credit side of Cash Book
- A. Credit side of Balance Sheet
- B. Debit side of Cash Book
- C. Debit side of Trial Balance
- D. Credit side of Cash Book
Explanation
The bank’s records are the reverse of the customer’s cash-book entries: money deposited is a credit in the cash book but a credit or liability to the customer in the bank’s books, while withdrawals appear as debits in the cash book and credits in the pass book. Therefore, the pass book’s debit side corresponds to the cash book’s credit side.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
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