Bank A/c Posting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2009 Hi All,

Q -1:- What is the diff. between current a/c & current a/c(with OD facility) & C.C.account?
Q-2:- Where should the above accounts booked in the tally under which group?(i.e.bank accounts,bank occ accounts,bank od accounts)?

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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09 November 2009 1. Cuurent A/c : Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. Current Accounts are cheque operated accounts meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of business hence they are non-interest bearing accounts. In a Current Account, a customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has funds to his credit. Generally, a higher minimum balance as compared to Savings Account is required to be maintained in Current account.

Whereas current A/C with Overdraft gives the opportunity to avail credit upto the temporary Overdraft limit fixed by bank. Customer has to pay interest on OD balance.

CC or Cash Credit is Bank finance to meet working capital gap or requirement secured against hypothication of stock/debtors.