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A bank checking account accepting deposits, making disbursements and always maintaining a zero balance is a Zero-Balance Account(ZBA). In ZBA, zero balance is maintained by transferring just enough funds from or to an account to makeup each day’s activity. The amount in the account is only large enough to cover checks presented. The main account is known as parent account and the subsidiary account is the daughter account.
Usually, corporations use ZBA to eliminate excess balances in separate accounts and maintain greater control over disbursements. A corporation transfers exact money into the ZBA account for which, the corporation has issued check. Once the check is cashed there will once again be a balance of zero in the account. ZBA helps the corporation to avoid keeping money in different places.