How is a bank overdraft at the beginning of the year entered in the receipts and payments account?

1. A favourable opening balance of cash and bank is recorded on the debit side of the account. 2. A bank overdraft is the opposite, an amount owed to the bank, so the textbook states it must be recorded on the credit side. 3. At the year end the treatment mirrors this: if the credit side total exceeds the debit side, the balancing figure on the debit side represents a bank overdraft. 4. A closing overdraft is then carried to the liabilities side of the balance sheet. 5. The textbook's illustrations show both an opening overdraft and a closing overdraft arising this way. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.3.1_