Question

i want to know the journal entries of bank overdraft account open

Answer 1

May be it will help you..

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).

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