Question

How would a negative bank balance be listed in a trial balance?

Answer 1

Banks give their customers overdraft services and when a customer uses that service bank balance becomes negative.

Negative bank balance is shown on the credit side of the trial balance as a liability.

Negative bank balance may be shown by the name of Bank overdraft.

Other possible situation that can make bank balance a negative one is charges debited by bank and not paid by the customer. When bank charges debited by bank are more than current balance of account then bank balance may have a negative balance.