Have an account?

Sign In

For the sake of quality, our forum is currently "Restricted" to invitation-only. In case if you wish to join our forum, please send an email seeking an invitation to "[email protected]".

Don't have account,

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Captcha Click on image to update the captcha.

Have an account?

You must login to ask question.

Need An Account,
Home/cash deposit in bank

Discy Latest Questions

Singh Arjun
In:
cash deposit in bankjournal entry
  1. Vaishnavi

    Every entity deposits its idle cash in its bank account. Depositing cash in the bank account will fetch interest to the entity and also ensure safety of the money. Cash deposit in the bank is one of the most recurring transactions in every entity’s day-to-day business activity. So, it is important tRead more

    Every entity deposits its idle cash in its bank account. Depositing cash in the bank account will fetch interest to the entity and also ensure safety of the money. Cash deposit in the bank is one of the most recurring transactions in every entity’s day-to-day business activity. So, it is important to know the journal entry for the same.

    Journal Entry for Cash Deposit in Bank

    I will present the journal entry using both the golden rule and the modern rule of accounting.

    1. According to the “Golden rules” of accounting

    Bank A/cDebitPersonal accountDebit the receiver
     To Cash A/cCreditReal accountCredit what goes out

    (Being cash deposited in the bank)

    2. According to the “Modern rules” of accounting

    Bank A/cDebitAssetDebit the increase in asset
     To Cash A/cCreditAssetCredit the decrease in asset

    (Being cash deposited in the bank)

    Example

    Sugar Ltd has idle cash 500,000. The finance manager deposited the idle amount in the company’s Bank of America A/c.

    Journal entry in the books of Sugar Ltd will be as follows-

    Bank of America A/cDebit500,000Debit the increase in asset
     To Cash A/cCredit 500,000Credit the decrease in asset

    (Being Cash deposited in Bank of America A/c)

    See less
    • 0