Multiple choice

When establishment expenses are paid from bank, then _________ side of the cash column of cash book is affected.

  1. debit

  2. credit

  3. both of them

  4. no effect
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When expenses are paid via bank, the transaction is recorded in the bank column of the cash book. Since the physical cash held by the business is not touched, the cash column remains unaffected.

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