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A bank statement shows an overdraft of GH¢190,000. Kofi, a debtor, paid GH¢400,000 into the...

Accounts - Principles of Accounts
JAMB 2025

A bank statement shows an overdraft of GH¢190,000. Kofi, a debtor, paid GH¢400,000 into the account. The new bank balance is

  • A. GH¢210,000 overdrawn
  • B. GH¢590,000 overdrawn
  • C. GH¢590,000
  • D. GH¢210,000
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Correct Answer: Option D
Explanation

The account is overdrawn by GH¢190,000.
When Kofi, a debtor, pays GH¢400,000 into the account, the overdraft is cleared, and the new balance becomes GH¢210,000 positive (400,000 − 190,000 = 210,000).


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