Question

On dissolution bank overdraft is paid or not paid

Answer 1

HEY MATE HERE IS YOUR ANSWER:-

Hi!

The bank overdraft represents a negative bank balance, in other words, it is placed on the credit balance of a bank account.

The most common practices are;

It is transferred to the credit side similar to any external liabilities.

It is also transferred to the credit side of bank account.

The accountants follow the statements they like whether related to first or second.