A) Cash at bank
B) Bank overdraft
C) Over payment to creditors
D) Cash in hand
✅ ANSWER: B
A debit balance in the bank statement indicates Bank overdraft. Overdrafts are where the bank account becomes negative and the businesses in effect have borrowed from the bank.
A debit balance in the bank statement indicates Bank overdraft. Overdrafts are where the bank account becomes negative and the businesses in effect have borrowed from the bank.