Accountancy, asked by Lakshita4190, 1 year ago

Bank charged interest on overdraft - journal

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Answered by LokeshJain
0
Ans.
The fees and charges the business incurs from the overdraft should be recorded as expenses on the income statement. The charges can be categorized as overdraft fees, a subaccount of a bank charges expenseaccount. These expenses reduce net incomeand in turn reduce the balance of retained earnings on the balance sheet.

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