Which of the following statements is true?
AA credit balance in the Pass Book indicates excess of deposits over withdrawals
BA Trial Balance will not tally if a transaction is omitted
CA customer to whom goods have been sold on credit cannot avail himself of a cash discount
DIf a Trial Balance tallies, it always means that none of the transactions has been completely omitted
Correct answer
A. A credit balance in the Pass Book indicates excess of deposits over withdrawals
Explanation
D. A credit balance in the Pass Book implies a favourable balance indicates excess of deposits over withdrawals and a debit balance in the Pass Book implies unfavorable balance i.e., a overdraft. Hence statement D. is the true statement.