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

A bank statement shows an overdraft of GH¢ 190,000. Kofi a debtor paid GH¢ 400,000 into the account. The new balance is
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  • A GH¢ 590,000
  • B GH¢ 590,000 0verdrawn
  • C GH¢ 210,000
  • D GH¢ 210,000 Overdrawn
Correct Answer: Option C
Explanation:
An overdraft is a deficit in a bank account caused by drawing more money than the account holds.
The bank will deduct the deficit balance from the new deposit as thus; GH¢ 400,000 - GH¢ 190,000 = GH¢ 210,000

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