INTEREST ON OVERDRAFT Flashcards
0
Q
Who sets the overdraft limit ?
A
The bank
1
Q
Is and overdraft a loan ?
A
Yes
2
Q
What is overdraft ?
A
Money the bank is wiling tot give you as a negative balance, but this must be paid back at a later stage. You will have a negative balance.
3
Q
Is interest charged on an overdraft ?
A
Yes.
4
Q
Where do you record interest on overdraft ?
A
Interest on over draft is not recorded on bank charges , it is recorded Ina separate account called interest on overdraft
5
Q
What does interest on overdraft operate as ?
A
It operates as an expense and is recorded in the CPJ
6
Q
What is the source document ?
A
The source document is the bank statement.
