What is the difference between Cash credit Account & Current Account???
SURAJ AGARKAR (CA FINALIST) (58 Points)
19 December 2008What is the difference between Cash credit Account & Current Account???
CA Tilak Raj Sharma
(Practising CA in Solan (H.P.))
(6374 Points)
Replied 19 December 2008
Cash Credit Account is an loan account, which is provided by the bank against your stock and debtors account.
Current Account is a business account where you will do business with your own money. Bank will never pay interest on the credit amount in this account but charge service charges. Sometime they also allow you to overdrawn in this account.
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