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The difference is very subtle and relates to the operation of the account. In the case of Cash Credit, a proper limit is sanctioned which normally is a certain percentage of the value of the commodities/debts pledged by the account holder with the Bank. Overdraft, on the other hand, is allowed against a host of other securities including financial instruments like shares, units of mutual funds, surrender value of LIC policy and debentures etc. Some overdrafts are even granted against the perceived "worth" of an individual. Such overdrafts are called clean overdrafts.
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Difference between cash credit and overdraft?
Cash is money. Credit is a delayed form of payment. Overdraft is based on credit and is also a delayed form of payment.
Difference between funded and non-funded credit facilities?
fund based facilities includes cash credites, bill discounting, overdraft and term loan
What Does An Overdraft Facility Mean?
An overdraft facility is generally given towards inventory and book debts. It is given as a limit for your cash credit account and can be drawn and paid back based on your cash flowrequirements.
Will your credit rating be affected if you cash a bounced check from someone else?
As long as you pay the bank fee (usually $3-10) and do not allow your account to go into overdraft status, your credit rating is not affected. Even an overdraft does not affect your credit unless your bank account is closed and you leave an outstanding overdraft balance due. At that point, the debt will likely be reported to credit bureaus, resulting in a drop in your credit scores.
What is the difference between eftpos and epos?
EFTPOS can accept credit cards, EPOS only cash
Difference between cash credit and overdraft?
Cash is money. Credit is a delayed form of payment. Overdraft is based on credit and is also a delayed form of payment.
Difference between funded and non-funded credit facilities?
fund based facilities includes cash credites, bill discounting, overdraft and term loan
Explain the difference between a cash and credit transaction for purchass and sales?
explain the difference between cash and credit transaction
What is the difference cash at bank and hand in cash and overdraft?
The difference between Cash on Hand from Cash in Bank is that the cash is on our hand while the other one is that cash is not in our hand but in the bank. Serioulsy, I really dont know. Thank you very much!
What Does An Overdraft Facility Mean?
An overdraft facility is generally given towards inventory and book debts. It is given as a limit for your cash credit account and can be drawn and paid back based on your cash flowrequirements.
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.
What is the difference between cash sale and credir sale?
A cash sale is instant - a credit sale is a 'promise' of payment to come.
Why is it not possible to have a credit balance brought down in the cash column of a cash book?
Beacause its an asset and it's just impossible to have a credit cash balance bank could have a credit balance when bank overdraft is given. IF ANYONE HAS A BETTER ANSWER PLEASE EMAIL AT kaleytube@gmail.com
What is Difference between cash receipts and cash payments?
the second word. here we differ these term by debit and credit when cash receipt then amount field is +ve as on debit and in cash payment it will be -ve as on credit and reverse for opposite .
Will your credit rating be affected if you cash a bounced check from someone else?
As long as you pay the bank fee (usually $3-10) and do not allow your account to go into overdraft status, your credit rating is not affected. Even an overdraft does not affect your credit unless your bank account is closed and you leave an outstanding overdraft balance due. At that point, the debt will likely be reported to credit bureaus, resulting in a drop in your credit scores.
What is the difference between eftpos and epos?
EFTPOS can accept credit cards, EPOS only cash
When do you use an overdraft?
You use overdraft when you know that you may end up in situations where you need cash but you may not have sufficient funds to meet your requirements. In such cases you may project your credit history to your banker and ask for overdraft. The banker would honor payments till your overdraft limit even if your account balance is '0'
