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Bank OD Balance
08-04-2010, 03:31 AM
Post: #1
Bank OD Balance
a company has 12 bank account .one of the account was overdrawn at balance sheet date ,but the net balance was positive.how would we show the overdraft on the balance sheet or just show the net balance .
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08-04-2010, 05:00 AM
Post: #2
 
you can do either of the two...but whatever option you choose..apply it consistently from period to period..

my personal view is..if there is a sizeable OD n current year or expected in future...you should segregate OD n present on liability side......and consistently apply this practice from period to period...

if OD is minor amount then u can just net it off.
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