Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 38 - No. 21)
What does a debit balance in a bank statement represent?
The bank owes the business money.
The business owes the bank money.
It's the same as the balance in the business's cash account.
It indicates an error in the bank statement.
Explanation
A debit balance indicates the business has withdrawn more money than it has deposited, hence owes the bank.
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