1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Open in App
Solution Overdrafts are where the bank account becomes negative and the businesses in effect have borrowed from the bank. This is shown in the cash book as a credit balance. In other words, when a firm withdraws more than its deposits from the bank, the situation will become a bank overdraft and will be treated as the liability of the business.
Similar questions View More
Join BYJU'S Learning Program
Related Videos
Bank Reconciliation Part 1
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program