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The bank has credited the account in error with $425 which belongs to another customer
“has credited” means:
bank has reduced the account of customer by 425$?
because,l have seen that the account of customer is the credit balance for the BankIf the bank credits an account, this is an increase to the customer.
Think of the customer’s bank balance as a liability for the bank, and an asset for the customer. An increase in the account is a in increase in the liability for the bank, and from their point of view is a credit entry.
This is the opposite way round to how the customer would see it, because for them their assets have increased so it’s a debit entry.
But revision kit means the opposite
?f you have ,look at 16.5(topic-bank rec)@suleymanabuzerli said:
But revision kit means the opposite
?f you have ,look at 16.5(topic-bank rec)Chris is correct. When looking at books of bank, s customer accounted is a liability so a credit to the account increases it’s value.
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