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Question

Unfavourable balance as per pass book means which of the following?
  1. Dr. balance in cash book
  2. None of the above
  3. Cr. balance in pass book
  4. Bank overdraft

A
Dr. balance in cash book
B
Cr. balance in pass book
C
Bank overdraft
D
None of the above
Solution
Verified by Toppr

Unfavourable balance as per pass book means debit balance or overdraft in the passbook. Passbook is a copy of the customer's account with the bank. It is prepared by the bank with the point of view of the bank. When we take a loan from the bank, we become debtor (asset) for the bank. So, the bank represents it by showing a debit balance overdraft balance in our passbook.

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