Question

Journal entry of bank charges for the month

Answer 1

Answer:

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The journal entries for the bank fees would debit Bank Service Charges and a credit to Cash. The journal entry for a customer's check that was returned due to insufficient funds will debit Accounts Receivable and will credit Cash.

Answer 2

Answer:

There are 3 golden rules to double entry system in accountancy, which are:

Debit what comes in, credit what goes out

Debit the expenses, credit the incomes

Debit the receiver, credit the giver

Using the first two rules, you can pass the journal entry as follows:

Bank A/c Dr (debit what comes in)

To Bank Charges A/c (credit the income)

The bank charges shall be credited to the Statement of Profit & Loss as an indirect income.

Bank charges a/c Dr

To bank

Bank charges are expenses so they are debited and bank a/c is credited because it will reduce the bank balance.

The journal entries for the bank fees would debit Bank Service Charges and a credit to Cash. The journal entry for a customer's check that was returned due to insufficient funds will debit Accounts Receivable and will credit Cash.

Explanation:

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