Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 16)
Which actions are signs of an overdrawn bank account?
Total debits exceed total credits.
The company can spend more money.
The bank account shows a positive balance
Total credits exceed total debits
Explanation
An overdrawn bank account arises when the total debits (payments) exceed the total credits (deposits). Thus it's a negative balance or debit balance.
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