On 8th April we open a overdraft account in bank , received amount on particulars account.
What will be journal entry?
5 Replies
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 16 April 2021
If there is a transfer from a separate OD account to (say) a current account, then it would be a contra entry:
Current A/c Dr
To OD A/c
Amit
(Accounts )
(528 Points)
Replied 16 April 2021
We have opened new account with limit of 1 or 2 crore
no transfer from other account
no transfer from other account
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 16 April 2021
Just create a new account under loans and account transactions just like any other bank accounts.
CA Shivani Singhal
(Chartered Accountant)
(49 Points)
Replied 17 April 2021
Bank overdraft limit is an off balance sheet item. Accounting entry would be made when the limit is used by making payment from that bank account, amount withdraw n or any amount is deposited to account.
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