Question 27
Banking and Bank ReconciliationA debit balance of D 61,000 on a customer's bank statement means that
- A.The customer's bank balance is D 61,000.
- B.the customer owes the bank D 61,000.
- C.a customer's cheque of D 61,000 is yet to be cleared by the bank.
- D.a direct deposit of D 61,000 was made by a customer.
Show the answer and explanation
Answer: B (the customer owes the bank D 61,000.)
Explanation
In the bank's records a debit balance is an overdraft: the customer owes the bank.