BANK O.D.
This query is : Resolved
11 June 2009
DEAR SIR/ MADAM
BANK O.D. IS COVERED UNDER CURRENT LIABILITIES OR SECURED LOANS. PLEASE TELL
THANKS INA ADVANCE
BANK O.D. IS COVERED UNDER CURRENT LIABILITIES OR SECURED LOANS. PLEASE TELL
THANKS INA ADVANCE
CS Vandana Kacholia
(Expert)
11 June 2009
A bank overdraft are classified as a current liability.
What happens here is withdrawls from the bank exceed deposits. The lending institution, usually the bank, would allow an extension of credit in such a case. The company is usually expected to pay within short-term and it results in negative balance in company's bank account. That is the reason for the overdraft being classified as a current liability.
What happens here is withdrawls from the bank exceed deposits. The lending institution, usually the bank, would allow an extension of credit in such a case. The company is usually expected to pay within short-term and it results in negative balance in company's bank account. That is the reason for the overdraft being classified as a current liability.
11 June 2009
its a current liability
CA Nitin Wadhwani
(Expert)
11 June 2009
If it is secured and permanent, then Secured Loans.
If it is unsecured(generally called as "TOD") then Current liabilities.
If it is unsecured(generally called as "TOD") then Current liabilities.
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