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mediumMCQCUET Accountancy 2023 11 June Shift 32026Accountancy
1 mark

If the credit side of Receipt and Payment A/c is more than the debit side then the difference will be shown as:

  1. A
    Bank Overdraft
  2. B
    Commission
  3. C
    Bank charges
  4. D
    Interest

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.

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If the credit side of Receipt and Payment A/c is more than the debit side then the difference will be shown as:
A
Bank Overdraft
B
Commission
C
Bank charges
D
Interest

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