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.

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It can be transferred to cr side of bank AC. Any shortfall in cash will be bought in by partners. Or the bank account will tally itself(probably this is the answer)
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