If the credit side of Receipt and Payment A/c is more than the debit side then the difference will be shown as:
- ABank Overdraft
- BCommission
- CBank charges
- DInterest
Solution & Step-by-step Explanation
The debit side of a Receipt and Payment Account records cash inflows (receipts), while the credit side records outflows (payments). When total payments exceed total available receipts, it signifies that the bank balance has gone negative, resulting in a Bank Overdraft.