On dissolution of a firm in which account Bank Overdraft is transferred
Irrespective of the fact whether Bank A/c is being prepared or Cash A/c, Bank OD will be transferred to the credit side of Bank A/c or Cash A/c. However, the difference is merely in terms of Particulars Column. If Bank A/c is being prepared, then Bank OD is transferred to the credit side as "By Bal b/d"; however. if Cash A/c is being prepared, then Bank OD will be transferred (again to the credit side) as "Bank OD A/c".
Normally, I prefer to prepare Bank A/c, if in case, Bank OD is given in the question.
Normally, I prefer to prepare Bank A/c, if in case, Bank OD is given in the question.