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Home › CBSE Class 11 (Commerce) › Accountancy › Bank Reconciliation Statement › How does a bank statement signal an overdraft?

How does a bank statement signal an overdraft?

AThe balance is left blank
BThe balance is followed by Dr. or OD
CThe balance is printed in red only
DThe balance is followed by Cr.
Answer & Solution
Correct answer: B. The balance is followed by Dr. or OD
A balance marked Dr. or OD tells the account holder that the account is overdrawn.
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