Question 7 of 45beginner💡 UnderstandMCQ1 mark

Credit balance of bank account in cash book shows:

Exercise: Test Your Understanding - I | Q: 1(g)
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Explanation

Option (A) is correct. The provided text explicitly states that in the bank column of the cash book, there can be a credit balance because of an overdraft taken from the bank. The context defines overdraft as a situation where cash withdrawn from the bank exceeds the amount of deposit.