In Q16 why the credit balance is shown as overdraft rather if credit word is used, it should mean that we are getting it which means that it should be our asset and not liability?

Dear Vidhi, as according to the rules of “Debit and Credit”, all the assets have debit balance and liabilities have credit balance. Similarly, in this question it is mentioned that Bank has credit balance which means this is Bank Overdraft (liability for the business). However, if it is mention the question that Bank has debit balance then we consider it as an asset.