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It means that you have money in your bank account that can be withdrawn whenever you need. A credit balance indicates that there is money in your account whereas a Debit balance indicates that you owe money to the bank. You can withdraw as much money as you have in your account anytime you want if the account is a saving or checking account. If it is a Time Deposit, you may have to wait until the deposit matures or incur the penalty for premature closure.
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Why is the balance as per bank statement on the bank reconciliation statement a credit if its a favorable balance but in the bank account the credit means you owe the bank money?
The Debit and Credit on a bank statement reflect the Bank's accounting records, not yours. So when you deposit money into your account, the bank owes you that money to you - it is a liability for them, therefore a credit entry. Similarly, if they charge you a bank fee, it reduces their liability to you, so they would Debit your account (on their books) and Credit an Income account.
What does it means if sundry creditor hava a debit balance and credit balance?
If someone has a creditor and has a debit balance and a credit balance this means they have a bank account. The bank account provides the debit card and the bank provides the credit balance.
When might someone see 'credit card 0 balance transfer' on their statement?
'Credit Card 0 Balance Transfer' would appear on your credit card statement if your credit card is paid off in full. This means that you do not have to transfer any money from your bank account to pay off your credit card balance.
What does D mean on a bank statement?
There will usually be a letter next to your bank account's balance. This will either be "C" (Credit) or "D" (Debit). A D next to your balance means you're in overdraft.
What does the code bgc on Natwest bank statement mean?
It means Bank Giro Credit
What does cr on my bank statement mean?
"CR" on your bank statement typically stands for "credit." This means that a credit transaction, such as a refund or deposit, has been made to your account.
Jared is performing a bank reconciliation and comes across a 3.50 interest credit What should he do with the credit to reconcile his statement?
subtract the credit from his checkbook balance.
Why does your bank statement show a credit for an increase in your cash balance?
It's because the bank statement is written from the POV (bank's point of view). In the double entry system, a debit entry is an increase in an asset or expense/decrease in income or a liability while a credit entry is an increase in a liability or income/decrease in an asset or expense. When you pay money into the bank this increases the amount the bank owes you or decreases the amount you owe the bank. From the bank's point of view this means an increase in the amount they owe you (their liabilities have increased) or a decrease in the amount you owe them (their assets have decreased). Hence, an increase in your cash balance at the bank is a credit entry on the statement your bank sends you.
How are items that is reported as credits on the bank statement represent a additions made by the bank to the company's balances or b deductions made by the bank from the company's balance?
On the banks books a deposit by a customer is as asset of yours but the bank's liability to you. In accounting a liability is reflected as a credit. So your deposit, an increase to your balance, is reflected as a credit on the statement. Conversely a disbursement of funds by a customer is a debit on the statement, reducing the customers balance as well as reducing the banks liability to you . Hope that helps.
Does bank overdraft go on a balance sheet or income statement?
Bank overdraft is shown in balance sheet same as bank account or any other cash account, it's a short term bank credit.
Why you make bank reconcilation statements?
Ending bank account balance per bank statement - add deposits made before and upto the date of the ending balance on the bank statement that are not on the bank statement - subtract checks and other expenses (debit cards, etc) made before and upto the date of the ending balance on the bank statement that are not on the bank statement - the end result is the reconciled bank account balance. 'Bank reconcilation statement' means veryfying / realising every transactions done with bank. It may be related with payment made or credit received or particular interest charged or received.
How is bank overdraft treated in the cash flow statement?
Prime purpose of preparing cash flow statement is to tally the closing bank balance with opening bank balance so if there is a bank overdraft or negative bank balance it will automatically adjusted when complete cash flow statement is prepared. If after the preparation of cash flow, cash flow balance and bank balance don't tally it means there is some mistake in cash flow statment and it should be reviewed for any correcions.
