I have to create a CC Bank ledger account. This account is dynamic it may dr or cr values at any point of time depending on the cheques issues/deposited.
My question is <u>is this Assest account or Liability account</u> because this account balance changes rapidly from time to time.
Bank accounts are normally created as an asset account only.
The net balance of current assets(this is the group in which the bank accounts form part in a finincial statement) will be arrived at.
If it is an overdraft or a loan account you may create it as an liability account