The debit balance of Pass Book represents overdraft.
State whether the following statement are True or False with reason :
The debit balance of Pass Book represents overdraft.
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This statement is True.
Debit Column of a passbook means withdrawals from the bank, When withdrawals are more than deposits it means the excess amount is withdrawn from the bank. It is a temporary loan payable by the trader to the bank. So the debit balance of Pass Book represents overdraft.
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