JAMB - Accounts Principles Of Accounts (2025 - No. 10)
A bank statement shows an overdraft of GH¢190,000. Kofi, a debtor, paid GH¢400,000 into the account. The new bank balance is
GH¢210,000 overdrawn
GH¢590,000 overdrawn
GH¢590,000
GH¢210,000
Explanation
The account is overdrawn by GH¢190,000.
When Kofi, a debtor, pays GH¢400,000 into the account, the overdraft is cleared, and the new balance becomes GH¢210,000 positive (400,000 − 190,000 = 210,000).
When Kofi, a debtor, pays GH¢400,000 into the account, the overdraft is cleared, and the new balance becomes GH¢210,000 positive (400,000 − 190,000 = 210,000).
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