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Sir, how is payables related to overdraft?
is it that when cash is paid early, the cash in the bank reduces, thereby losing interest we would have recd, had the money remained in the bank? And also money could have been overdrawn if there is insufficient cash leading to overdraft interest? Am I right Sir?You are correct. So you would normally only be prepared to pay earlier than you need if you were getting a discount for paying early.
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