I was asked to transfer funds from one negative account to another so it will have a negative balance too. Is it possible, if so I would like to know. I was asked to make a transfer like this at work but no one could tell me how.


Thanks,

Preciousdi

You don't because you can't. You cant transfer funds that you don't have... and the negative amount is how much you don't have.. You have to have a positive balance to transfer something.

I'm surprised the bank doesn't bring legal action on you for writing bad checks. Overdraft protection doesn't mean you can run a negative balance indefinitely, they expect you to make good on that within a certain time frame.

Thats how it works in the banking world. But I have a feeling you mean within a non-banking business eviroment.

Do you mean for accounting purpose. They want you to show a change in money, that does not exist for some accounting purpose?

But, no, in the real world, at the real bank, you can not transfer money "out" of a negative account, that is not realistic. If there is no money in the account, money can not be taken out.

I agree, this must be some book work issue, where there is no real tranfer of money but an accounting issue??

But, you said, "so it has an negitive balance too" that means... you transfer money from an account, with money, and put it into the account with negative balance. If you took all the money from the account, with positive balance and put it into the one, that is negative. (assuming it is less money than negative balance) then both would be negative

Let us try to get some rational definition here that fits accounting terminology

By Negative do you mean the account has a credit balance. If so it is possible to transfer an amount from one account to another for a legitimate purpose. If you do this, usually with a journal entry then you will reduce the "negative" balance in one account and you may increase it in another

Do you mean you have an overdraft arrangement in a bank account which could be transferred to another bank account which is overdrawn? To do so requires a physical transfer of funds which is then recorded in the accounts