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: Option C

C. GH¢ 210,000

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