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Accountancy
Dr. Balance in bank current account means it is overdraft so it is to be shown under current liability but in this question, in ans key it is treated as like that of cr. Balance. Which is correct?
Answers (2)
Valid point. But if we carefully, read the question it says - Their books show the following ledger balances as on 31st March, 2021. So that Dr. Balance is as per books and thus, it means is positive bank balance. We should put a note to same effect in our solution.
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