How would you know if a bank balance is favorable or overdraft?
submitted by masonele

Arnold

A positive bank balance is "favorable." A negative balance is by definition, an over draft. However, just because a check has been written does not mean it has been delivered. Companies often write checks on open A/P balances for "window dressing" purposes, but hold the checks until cash balances are adequate.

Blodwick

A favorable bank balance is a balance from a bank statement that shows credit and is going to be debited in the bank account. Unfavorable is the opposite of this.

sai kiran

If the given balance is positive, then it is favorable. If it is negative, then it is known as "overdraft."

Vernon K Dzwairo

An overdraft mantains a credit balance where as a favourable mantains a debit balance, thus you check T accounts.

Masceline

Your bank account is an asset to the business, so a favourable bank account balance is on d credit side of d ledger. For the overdraft, the opposite is true.

zakir

Favorable balance is a balance where the credit side of a bank statement is greater than the debit side.

Duduzile Buda

If a bank account is favourable, it gos to debit side. If the account is unfavourable, it goes to credit side.

Triveni

In the Bank statement if the credits during the year are more than the debits - It is favourable balance
But in Books - Its opposite i.e., if debits are more than credit it is favourable balance
Unfavourable - Opposite to this

Zee Zuka

An overdraft means that we owe the bank money the bank is unfavourable and the bank balance will go on the credit side whilst a favorable balance is debited

Simberd Mlifa

A favuorable balance is DEBITED in the BANK ACC, while an unfavourable is the oposite of the above

anju

Favourable balance will be +(dr) in CB and - (dr) in PB whereas unfavourable balance will be -(cr) in CB but +(cr )in PB. Simple...

Deepak

There are two book cash book and paas book cash book maintained by company holder or clint where paas book maintained by bank clerk from company point of view debit balance of cash book is favorable where debit balance of paas book is unfavorable as link credit balance of cash book is unfavorable where credit balance of paas book is favorable

Malwande

Favorable bank statement is on the credit side, then on your bank account it's debited.

Appiah Ernest Frempah

If the given balance is positive, then it is favorable. If it is negative, then it is known as over draft.