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Banking companies

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Logic behind this adjustment?? *Included in the current accounts ledger are accounts overdrawn to the extent of 25,00 Doubt: overdraft is a asset for the banking company,In question they said that it is included in the credit side of current account Which is a liability which means we have to deduct the overdraft from the current account but why they have added the overdraft in demand deposit????

Shinisha Rose R

CA Final

★ 11K+

18-Mar-22 16:52

357

Answers (2)

Best Answer

Overdraft is asset. Current account liability. They have shown net amount. Means liability shown is less. So increase liability and asset

CA Suraj Lakhotia

Admin

18-Mar-22 17:28

Increase

Cyril Paulson

CA Final

★ 3K+

18-Mar-22 22:37