Maharashtra State BoardHSC Commerce 11th
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State whether the following statement is true or false with reasons: Bank overdraft is an asset of the business. - Book Keeping and Accountancy

MCQ
True or False

State whether the following statement is true or false with reasons:

Bank overdraft is an asset of the business.

Options

  • True

  • False

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Solution

This statement is False. 

The amount withdrawn by the Current Accountholder in excess of the balance in his Current Account up to a predetermined limit decided by the bank on the basis of security offered is called Bank Overdraft. It is a temporary loan given by the bank to the Current Accountholder. It is a liability of the business.

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APPEARS IN

Balbharati Book-keeping and Accountancy 11th Standard HSC Maharashtra State Board
Chapter 1 Introduction to Book - Keeping and Accountancy
Exercise Q.4 | Q 4 | Page 17
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