Bank accounts

trians

Does a debit balance (£1000) on the bank account simply mean that there is £1000 actually in the account?

How would an overdraft be termed?

Gem7321

Yes a debit balance means there is £1,000 in the account, an overdrawn bank account would have a credit balance of £1,000

[Deleted User]

A bank account with money in it is an asset so it shows as a debit. Try to remember the below acronym as it helps greatly.

Debit
Expenses
Assets
Drawings

Credit
Liabilities
Income
Capital

marknotgeorge

Part of the problem may be that to non-accounting people, being in credit means they've got money in the bank. That's because bank statements are looking at it from the bank's perspective. The bank effectively owes you money, so to them you are a creditor.