A bank passbook is formally referred to as a bank statement. It serves as a periodic record provided by the bank to the account holder, detailing all transactions, including deposits, withdrawals, and interest, that have occurred in the account over a specific period. It acts as an official summary of the bank's records regarding the customer's account balance.

From the bank's perspective, a customer's deposit is a liability. Therefore, when a depositor has a positive (debit) balance in their Cash Book, the bank records this as a credit balance in the customer's account on the Bank Statement. This inverse relationship is a fundamental aspect of the double-entry system applied to banking records.

A bank statement is a summary of financial transactions that have occurred over a specific period on a bank account. Banks provide these statements for various account types, including current, savings, and foreign currency accounts, to help customers reconcile their records with the bank's ledger.

A bank statement is prepared from the bank's perspective. A credit balance in the bank's books means the bank owes money to the customer, which signifies a positive balance or 'Cash at bank' for the business entity. Conversely, a debit balance in the bank statement would indicate an overdraft.

A bank statement is a periodic document issued by a bank to its account holder, detailing all transactions, including deposits, withdrawals, and interest, that have occurred in the account during a specific period.

From the perspective of the bank, a customer's deposit is a liability because the bank owes that money to the customer. Therefore, when a business deposits cash, the bank increases the customer's account balance by recording it as a credit. This is the opposite of how the business records the transaction in its own books, where a deposit is a debit to the bank account asset.

A bank statement is a formal document issued by a bank to its account holder. It provides a detailed summary of all transactions, including deposits, withdrawals, and interest, that have occurred in the customer's bank account over a specific period. It is prepared by the bank's internal accounting systems.

In accounting, the bank passbook reflects the bank's records of the customer's account. When a cheque is issued, the bank only records the transaction and updates the passbook balance once the cheque is actually presented by the payee for payment. Until that moment, the bank remains unaware of the transaction, meaning the passbook balance does not change upon the mere act of issuing the cheque.

A bank statement reflects transactions that have passed through the bank account. Payments from petty cash are internal business transactions handled by the company's own petty cash fund and do not involve the bank directly. Conversely, interest charges, dishonored cheques, and direct debits are all external transactions that directly affect the bank balance and are therefore recorded by the bank.

The cash book and bank statement show opposite balances because they record transactions from different perspectives. A debit balance in the business's cash book represents an asset (money in the bank), whereas the same amount appears as a credit balance on the bank's statement, as the bank views the deposit as a liability to the customer.