answersLogoWhite

0

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.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

Can a bank overdraw your account to pay their own charges?

It Depends: Yes - If you have a valid overdraft account with the bank and you currently do not have enough balance in your account to pay for bank charges No - If you do not have a valid overdraft account with the bank.


Can you explain how overdrafts work in banking?

An overdraft occurs when you spend more money than you have in your bank account. The bank covers the difference, but charges you a fee for this service. You then owe the bank the amount of the overdraft, plus the fee.


Is a bank overdraft an liability?

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.


What is journal entry of bank overdraft?

Debit cash / bankCredit loan from bank / bank overdraft


Is an overdraft a liability?

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.


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 does ODI mean on bank statement?

ODI on a bank statement typically stands for "Overdraft Indicator." It signifies that an account is currently in an overdraft position, meaning the account balance has fallen below zero and the bank has allowed transactions that exceed the account's available funds. This can result in fees and interest charges, depending on the bank's policies. It's important for account holders to be aware of their overdraft status to manage their finances effectively.


Where do you put loan interest and bank overdraft in final accounts junior cert?

interest on bank 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.

Trending Questions
C What are the reasons for formulating and implementing an operations strategy? Forty thousand dollar check from a business in Pa you need 5 thousand in cash and 30 thousand to be western unioned can you do this at your ace check cash store? Where in Toronto can I find a payday loan store? What financial services are available through electronic banking systems? When a mortgage broker shops around for a home loan and there are numerous inquiries on your credit report how long do they stay on your report? Can you explain how vehicle leases work in detail? Should the Titles of controller and treasurer be adopted under Indian context? What do you get when your insurance policy is paid up? What if your paycheck each week is 500.00. If you want to save 2000.00 dollars in one year how much should you set aside from your paycheck each week? Do you still have growing interest when you close a credit card account to pay it off? Who is crstnstrat masviaach? Is stock price maximization is equivalent to shareholders wealth maximiztion? How much is a cinco mil bolivares worth in US dollars? On a 100BASE-TX Ethernet network where will you find the transceivers? How many millionaires in fl? Which type of mortgage is designed so that payments remain the same throughout the life of the loan? Can Walmart gift cards be used to buy money orders? Who owns Cooper Standard Co? How much is 8.7 million pounds in US dollars? Where can one find information about educators credit union?