Cash at the bank is an asset for you but a liability for the bank if it is held in a checking or regular savings account.
what is external liability all debts that are external from the business eg. bank loan,bank overdraft,
[Debit] Bank service charges xxxx [Credit] cash / bank xxxx
[Debit] Bank service charges [Credit] Bank account
No
For Bank: Liability For You: Asset
Cash at the bank is an asset for you but a liability for the bank if it is held in a checking or regular savings account.
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.
what is external liability all debts that are external from the business eg. bank loan,bank overdraft,
bank charges a/c debit to cash a/c credit
[Debit] Bank service charges xxxx [Credit] cash / bank xxxx
[Debit] Bank service charges [Credit] Bank account
No
what does banking charges mean
LC confrmation charges is the charges paid to confirmation bank and born by the applicant, normally a confirmaton bank is bank which give the payment on the presentation of documents by applicant,s bank
Bank Overdraft as Liability by Kayors Yes, a bank overdraft are classified as a current liability. What happens here is withdrawls from the bank exceed deposits. The lending institution, usually the bank, would allow an extension of credit in such a case. The company is usually expected to pay within short-term and it results in negative balance in company's bank account. That is the reason for the overdraft being classified as a current liability.
The money has to be paid out on demand.