What will be the treatment for bank overdraft according to the new syllabus
Dear Student,
As per new guidelines issued by CBSE, bank overdraft is to be treated as a reduction from cash and cash equivalents. So, the amount of bank overdraft will be deducted from cash and cash equivalents to ascertain the net cash and cash equivalents.
Therefore, Closing Cash and Cash Equivalents = Opening Cash and Cash Equivalents - Bank Overdraft
Hope this answers your query.
Keep Posting!!!
As per new guidelines issued by CBSE, bank overdraft is to be treated as a reduction from cash and cash equivalents. So, the amount of bank overdraft will be deducted from cash and cash equivalents to ascertain the net cash and cash equivalents.
Therefore, Closing Cash and Cash Equivalents = Opening Cash and Cash Equivalents - Bank Overdraft
Hope this answers your query.
Keep Posting!!!