question 3 in cash budget jun2009 why we start with anegitive overdraft ( 3800) as open cash balance for the first month why negitive ? please help
ACCA Forums
FMca
Because it's an overdraft which is a liability - by definition the opening cash balance is negative.
15y ago#2more so.. every cash budget starts with actual balances of the cash book.. an in that scenario there is an overdraft .. which is negative.. so it would have an opening balance of negative
.
.
Sign into reply to this topic.