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109.More information
A current account is an agreement by which two parties in an ongoing business relationship, agree to assign the whole of their debts to a single account and to waive the individual nature of each debt and recognize only the balance of the account, made up of the debit and credit balances payable at all times. Since a current account records debts deriving from the various transactions between the two titularies of the account, it is therefore important to be able to determine the precise moment a debt actually enters the account. This is indicated through records of bank advances and overdrafts.
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