DEPOSITED CHEQUE FROM SAVINGS ACCOUNT IN FIRMS ACCOUNT WITH GST JOURNAL ENTRY
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Answered by
16
The current transaction affects two accounts... savings Bank a/c (Payer).. because We are paying through Cheque. ,Bank a/c(current account; payee)... because We are depositing it in forms Current account..
The golden rules of accounting are...
Personal Account - Debit the receiver 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
Bank account is a Real account( Bank balance is an asset; all assets and Liabilities come under Real account)
in contention with the above rules....
Bank a/c (payee ; current account) should be debited..coz cash is comingin..
Bank a/c (Payer) should be credited..coz we are paying through Cheque,cash is going out
So the Journal Entry will be...
Bank a/c (current a/c) Dr xxxx
To Bank(savings) a/c xxxx
(being Cheque deposited into bank)
The golden rules of accounting are...
Personal Account - Debit the receiver 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
Bank account is a Real account( Bank balance is an asset; all assets and Liabilities come under Real account)
in contention with the above rules....
Bank a/c (payee ; current account) should be debited..coz cash is comingin..
Bank a/c (Payer) should be credited..coz we are paying through Cheque,cash is going out
So the Journal Entry will be...
Bank a/c (current a/c) Dr xxxx
To Bank(savings) a/c xxxx
(being Cheque deposited into bank)
Answered by
0
Answer:
bank a/c dr.
To capital a/c
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