Are these statements about debit entries true or false?
A debit entry in the cash book will increase an overdraft in the accounts.
A debit entry in the cash book will increase a bank balance in the accounts.
The correct answer is: (1) false and (2) true.
When cash is received by a business, a debit entry is made in the cashbook. A receipt of cash decreases an overdraft and increases a bank balance.
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