But Mam this bank od balance and cash is not in the questions in the solution they have written both bank overdraft and cash and cash equivalents. Also in sum no 3 pg 3.4(ssei book) we have the same type of questions and in the solution we have prepared a banka/c in working notes and then we have shown the balance in cash and cash equivalents in balance sheet.
Mam for reference I have also attached the video of Q3 bank o/d treatment
Yes the combined entry will be
Cap redn ac dr 700
To bank 700
In which question we have done set off of the cash bal and overdraft?
We can never set off these two balances
But Mam this bank od balance and cash is not in the questions in the solution they have written both bank overdraft and cash and cash equivalents. Also in sum no 3 pg 3.4(ssei book) we have the same type of questions and in the solution we have prepared a banka/c in working notes and then we have shown the balance in cash and cash equivalents in balance sheet.
Mam for reference I have also attached the video of Q3 bank o/d treatment