Question

Cheque received from M/s Lara India for final settlement 11,500 and deposited same day into bank. Journalise the entry.

Answer 1

journal entry

Bank A/c. Dr. 11500
To. M/s Lara India A/c. 11500
(being cheque received from M/s lara India and deposited in bank )

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reasons for debit and credit

bank account is debited because the cheque is received by the company at the same is deposited at the bank here banker is a receiver of the cheque .

M/s Lara India is credited because they are creditors and they giver of the money .

Answer 2

hey mate the journal entry for this will be

bank a/c dr 11,500

to M/s Lara a/c 11,500

(being cheque received and deposited into bank)


reason --> as the cheque received and deposited on the same day into bank