Overdraft balance as per cash book will be _________________.

shown in minus column of bank reconciliation statement

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shown in 'plus' column of bank reconciliation statement

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will be carried forward for next period

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none of the above

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Solution

The correct option is A shown in minus column of bank reconciliation statement
Overdraft means we have taken a loan from the bank. It is indicated by negative or credit balance in the bank column of the cash book. It is shown in the 'minus' column of the cash book, all the causes of differences are accommodated to arrive at the other balance in order to reconcile the two differences at the time of preparing bank reconciliation statement for a particular period.

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