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Some of the disadvantages of a bank overdraft facility are:
- you keep spending money even when you don't have enough cash to meet your spending
- you pay an interest on the money you utilize as part of the overdraft
Wiki User
∙ 13y ago
Wiki User
∙ 12y agobanks can sell your mortgage submitted to bank i case you fail to pay
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What is journal entry of bank overdraft?
Debit cash / bankCredit loan from bank / bank overdraft
What is the journal entry for bank overdraft taken from any bank?
Debit cash / bankCredit bank overdraft
Is bank overdraft an asset?
yes it is an asset overdraft
Where is an opening bank overdraft shown?
Would you classify a Bank Overdraft as Cash? If Yes, why?
When filing for a bank overdraft what do the bank check for?
Your income & your ability to repay the money provided as overdraft
What is the journal entry for overdraft?
For an overdraft, the journal entry would be to debit the bank account (increasing the overdraft liability) and credit the corresponding expense account or accounts that led to the overdraft. This reflects the additional amount drawn from the bank account beyond the available balance.
Where do you put loan interest and bank overdraft in final accounts junior cert?
interest on bank overdraft.
Do you have to pay interest on a bank overdraft?
do you have to pay interest on a band overdraft ?
What are the Advantages and disadvantages of a bank overdraft?
Advantages of a bank overdraft include avoiding the embarrassment of a charge or check being declined, as well as avoiding potential fees that some places charged if a transaction bounces. The main disadvantage of an overdraft is the cost, which can be higher than a bounced check fee. Overdrafts may make it harder for someone experiencing financial trouble to catch up.
Difference between bank loan and bank overdraft?
These two terms are different.For a bank overdraft, you should have an account with the bank and it is a limit on borrowing on a bank current account. With an overdraft the amount of borrowing may vary on a daily basis.A bank loan is a fixed amount for a fixed term with regular fixed repayments. The interest on a loan tends to be lower than an overdraft.
What is the reason for overdraft charges from a bank?
Bank overdraft charges are the result of someone spending more money than they have in their bank account. The bank then charges interest on the overdrawn amount.
Is an overdraft an advance?
Yes. Overdraft is like an advance where you take cash from your overdraft account (even though you do not have equivalent bank balance) and then you repay the money to the bank once you have raised enough funding to repay the same. The bank would charge you an overdraft fee + interest for the money you borrowed from them
