During a period with a nil opening bank balance, a business deposits Rs 50,000 and issues cheques worth Rs 62,000. What does the bank column show at the end?
Correct answer D. A credit balance (overdraft) of Rs 12,000
Explanation
Payments exceed receipts by 62,000 - 50,000 = Rs 12,000, so the bank column has a credit balance, meaning an overdraft of Rs 12,000.
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