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

A.

GH¢ 590,000

B.

GH¢ 590,000 0verdrawn

C.

GH¢ 210,000

D.

GH¢ 210,000 Overdrawn

Correct answer is C

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