Hi
I am a bit confused. Company has a total overdraft facility of £10k and as at balance sheet date is £2k overdrawn. There is just one company bank account, no petty cash.
How is this reflected in the balance sheet? Should it be either:
a)
Current Assets
Cash at bank and in hand = £nil
Creditors
Overdraft = £2k
or,
b)
Current Assets
Cash at bank and in hand = £8k
Creditors
Overdraft = £10k
Both give same net balance.
Guidance appreciated.
Many thanks
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