Question

ALREADY OVERDRAFT FACILITY HERE THEN TOP UP OVER DRAFT
RECIVED MONEY WITH BANK WHAT JORNEL ENTRY PASSED

Answer 1

Answer:

In the given case, Bank Overdraft is a liability (ie. Credit balance in the Bank A/c).

Following is the JV to be passed:-

In the Books of the Firm)

Cash / Bank A/c Dr.

To Bank Overdraft A/c

(Being Overdraft received from Bank)

(In the books of Bank)

Bank Overdraft A/c Dr.

To Cash / Bank A/c

(Being Overdraft given to Customer).

Regards,

Devendra