Question

bank charges ,journalise

Answer 1

Given "Bank charges charged by the bank"

this transaction affects two accounts... bank charges a/c(bank is charging) an d bank a/c(those charges are paid/deducted out of the bank)..bank a/c is a real account(all assets and liabilities come under it..here bank is an asset)..bank charges a/c is a nominal account(all expenses incomes gains losses come under nominal account...here bank charges is an expense)

the three golden rules of accounting are

personal account - debit the reciever, credit the giver

nominal account- debit all expenses and losses, credit all incomes and gains

real account- debit what comes in, credit what goes out

so in contention with the above rules..Bank account should credited since amount from bank is going out...bank charges account should be debited since it is an expense...

so the journal entry will be

bank charges a/c Dr xxxx

To bank a/c xxxx

(being bank charges marked by the bank)