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What is the difference between Overdrawn and Overdraft?
I found it slightly different when the question ask “The cash book shows a bank balance $ xx Overdrawn –> they show $ xx as a positive figure. Whereas “The bank statement shows an Overdraft of $ ii –> they showed $ ii as a negative figure ??These words mean the same. One is verb, another – noun.
On it’s own overdraft doesn’t have sign – neither positive nor negative.
For bank it is an asset (as someone owes money to bank), and may be shown as positive figure, and for company/person it is a liability (and may be shown as negative figure). But signs are not essential, the main is meaning.
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