Multiple choice

Cash deposited in the bank, will affect ______ the side of cash column and _______ side of bank column, of the cash book.

  1. debit , credit

  2. credit , debit

  3. Both 1 and 2

  4. credit , credit
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Depositing cash into a bank account is a contra entry that involves two columns of the cash book. The cash column is credited because physical cash is leaving, and the bank column is debited because the bank balance is increasing.

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