what is the diffrence between bank o/d & bank occ?
- 1 Answers
- 20601 Views
- I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
A business entity can open a Current A/c or Cash Credit A/c
(CC) with a bank. When the bank allows the borrower to draw
money in excess of the balance in the current A/c to tide
over a short term working capital requirement, the amount
drawn in excess of the balance in the A/c is called
'Overdraft' or OD.
Where as in case of Cash Credit A/c the borrower can
regularly utilise funds up to the sanctioned limit. Cash
Credit is a working capital facility provided by the banker
to the borrower. Bank will charge interest on overdraft
amount or the cash credit a/c at the agreed or prevailing
bank rate. So long as the Current A/c is not overdrawn, the
balance in it appears under Current Assets & the balance in
the CC A/c appears under Current Liabilities. Overdraft in
teh Current A/c will also appear under Current Liabilities.
OCC means Open Cash Credit.
| Is This Answer Correct ? | 66 Yes | 5 No |
Post New Answer View All Answers
1.WHAT IS BRS? 2.WHY DO WE PREPARE BALANCE SHEET? 3.WHAT IS TRIAL BALANCE? 4.WHAT IS VENTURE CAPITAL? 5. WHAT IS DEFFERED REVENUE EXPENDITURE?
what is the diffrence between cash flow & cash fund?
record the following transaction in the various books of accounts F Black loan us $5000 paid by cheque.
Tell me what would you say are the most important qualities of an account manager?
What are the functions of manger -accounts and manager-finance? Explain in detail
Can CPF share given by govt. added in the Financial gross salary while calculating Total gross salary at the end of Financial year.For eg: My gross salary is Rs.X during a Fin. year & govt share of CPF is Y then Total Fin. Year gross salary is =X+Y,is it correct?
Private purchases amounting to rs 5000 have been debited to purchases account
Q1©. Gratuity of Rs. 1,20,000 is received in August, 2007 by Mr. M, a legal heir of Mr. R aged 45 years who died on June 28, 2007. Is it taxable?
Do you know public accounting?
How to calculate ESI Please define what include in basic salary and what should be excluded from basic salary
Explain the Invoice verification process
How many invoices on average do you handle on a weekly/monthly basis?
Time limit for payment of divident for listed limited companies & Unlisted public limited companies are? 30 or 45 or 60 or 90
Recent trends in Corporate Governence?
Tell me which accounting application you prefer most and why?
