Multiple choice

Goods sold and received a cheque (deposited in the bank on the same day), will affect which side of bank column in a cash book?

  1. Debit side

  2. Credit side

  3. Both 1 and 2

  4. No effect
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Receiving a cheque and depositing it on the same day increases the bank balance of the business. In accounting, an increase in an asset like a bank balance is recorded on the debit side.

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