6 Why, if a business has money in the bank, does it appear as a debit balance in the business’s ledger?

(a) It is a mistake – it should be a credit balance

(b) It is showing that the bank owes the money to the business (a business asset)

(c) As all the debits equal all the credits, there is no difference between a debit and credit balance

(d) It shows that the business is in debt to the bank