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Hello there,
Hope someone can help with this one - what to do with an overdraft in terms of current assets?
In Q&A bank part 3:
Q 3.23 has a balance sheet with a cash figure in the current assets that includes the overdraft liability
Q 3.24 we work out a balance sheet with no cash figure in the current assets but an overdraft liability. Should there not be a current asset cash item to the tune of this overdraft?
I can get it to balance but this train of thought has thrown me, any help would be much appreciated.
Hope someone can help with this one - what to do with an overdraft in terms of current assets?
In Q&A bank part 3:
Q 3.23 has a balance sheet with a cash figure in the current assets that includes the overdraft liability
Q 3.24 we work out a balance sheet with no cash figure in the current assets but an overdraft liability. Should there not be a current asset cash item to the tune of this overdraft?
I can get it to balance but this train of thought has thrown me, any help would be much appreciated.