WAEC - Accounts Principles Of Accounts (2016 - No. 6)
A bank statement shows an overdraft of GH¢ 190,000. Kofi a debtor paid GH¢ 400,000 into the account. The new balance is
GH¢ 590,000
GH¢ 590,000 0verdrawn
GH¢ 210,000
GH¢ 210,000 Overdrawn
Explanation
An overdraft is a deficit in a bank account caused by drawing more money than the account holds.
The bank will deduct the deficit balance from the new deposit as thus; GH¢ 400,000 - GH¢ 190,000 = GH¢ 210,000
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