Where should bank overdraft be in trial balance?

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1159081

2026-08-01 18:50

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In a trial balance, a bank overdraft should be recorded on the credit side as it represents a liability for the bank account holder. It indicates that the account holder has withdrawn more money than is available, resulting in a negative balance. This liability reflects the amount owed to the bank and should be included under current liabilities in the financial statements.

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