Multiple choice

When money is deposited in bank, _______ the cash column side of the cash book is affected.

  1. debit

  2. credit

  3. both the sides

  4. no effect

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Depositing money into a bank account reduces the amount of physical cash on hand. In a double-column cash book, this decrease is recorded by crediting the cash column.