Bank Overdraft
Code: 2216
👁 Views: 36
Account Information
| Account Type | Statement of Financial Position |
| Normal Balance | Credit |
Definition
Bank account overdraft used as temporary financing
Common Journal Entries
Use bank overdraft
Dr. Expenses
Cr. Bank Overdraft
Repay bank overdraft
Dr. Bank Overdraft
Cr. Bank Account
Record overdraft interest
Dr. Interest Expense
Cr. Bank Overdraft
Convert overdraft to loan
Dr. Bank Overdraft
Cr. Short Term Bank Loans
Use bank overdraft
Dr. Expenses
Cr. Bank Overdraft
Repay bank overdraft
Dr. Bank Overdraft
Cr. Bank Account
Record overdraft interest
Dr. Interest Expense
Cr. Bank Overdraft
Convert overdraft to loan
Dr. Bank Overdraft
Cr. Short Term Bank Loans