Will a debit entry in the cash book increase a bank balance or an overdraft
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submitted by Hiram Cheap

WillySpells

A debit entry in the cash book does increase the bank balance, assuming the cash book is double-entry style where cash received is debited. The debit would reflect an inflow of cash into the bank account, which obviously increases the bank's credit balance.

Assuming I understand your question, if the account was previously overdrawn, this debit could reduce the overdraft, but in general, a debit in the cash book signifies an increase in the bank balance.

John Wylder

When you put a debit in the cash book, it means money has come into the bank, so the bank balance goes up. It doesn't create an overdraft. Instead, it makes the bank account more positive.

schmitty

Debit in cash book = more money in bank = bank balance increases. No overdraft here.

Cassandra

I think a debit entry in the cash book makes the bank balance go up or maybe it causes an overdraft? Not entirely sure, but I think it usually increases the balance.