When there is overdraft by one of customer of bank say of 25000 in current account. what will be the entry for 25000 in bank's books and how it will appear in balance sheet??
4 Replies
Anoop srivastava
(223 Points)
Replied 05 September 2020
To be shown under current liabilities as short term loan
falguni vichare
(5 Points)
Replied 05 September 2020
How it will be a liability for a bank ? Isn't it an asset bcoz it is receivable from customer
Anoop srivastava
(223 Points)
Replied 05 September 2020
The question which I have understood is a current account having negative balance of 25k. if this understanding is correct then my reply is also correct in customers books. if you are asking what bank will show in their balance sheet then your reply is ok. it will be asset in bank books
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