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What is shadow balance?

Answer Posted / kishore

Shadow Balance in bank accounts is the balance upto which
the subsequent debits can be posted upto.

Shadow Balance = Book Balance - Debit (yet to be authorised
for posting).

Example: Book balance is 1000. There is a debit of 500.
The debit is posted in the system and is sent for
authorisation. At this juncture the Account shows a Shadow
Balance of 500. I hope I am clear.

Is This Answer Correct ?    10 Yes 12 No



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