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متابعة

The definition presented below is for bank overdraft, but what the definition of (book bank overdraft)?

<p>Bank overdraft is a form of financing in which the bank honors presented checks even when there is no balance in the business account which results in negative balance in the bank account.</p>

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تم إضافة السؤال من قبل Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate
تاريخ النشر: 2014/10/11
Almutaz Bakry Sidahmed
من قبل Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate

(book bank overdraft) which represent situation in which the balance as per cash book is negative while the balance as per bank book is positive. It arises when the checks written exceed the bank balance available thereby resulting in negative bank balance in books but since those checks are not yet presented so the bank balance is not negative and there is no 'actual bank overdraft'.

Shafiq Ur Rahman Mohammed
من قبل Shafiq Ur Rahman Mohammed , SENIOR ACCOUNTANT , Dubai Holding Group

Book Overdraft is a situation when a company issues checks in excess of what the bank balance is, but those checks have not been presented for clearance to the bank yet. Thus, this is an overdraft on the company books. 

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