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A bank statement shows an overdraft of GH 190 0... - WAEC Accounting 2016 Question

A bank statement shows an overdraft of GH¢ 190,000. Kofi a debtor paid GH¢ 400,000 into the account. The new balance is

A
GH¢ 590,000
B
GH¢ 590,000 0verdrawn
C
GH¢ 210,000
D
GH¢ 210,000 Overdrawn
correct option: c

An overdraft is a deficit in a bank account caused by drawing more money than the account holds.

The bank will deduct the deficit balance from the new deposit as thus; GH¢ 400,000 - GH¢ 190,000 = GH¢ 210,000

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