Question

Open a bank account with SBI

Answer 1

Note:- The mode of payment is not mentioned so i will take it as Cash/Bank

Opening a bank account..amounts to an asset (incoming)

Opening it with a Cash/Cheque..that means we are paying amount (cash in bank) via Cheque/cash.... so it Amounts to (outgoing) decrease in Asset...

so this transaction affects two accounts ...SBI Bank a/c (new)....and cash account /bank account (old) is a Real account (all assets and Liabilities come under Real account)


we know that...

Real Account - Debit what comes in credit ,what goes out


so.... The Journal Entry will be..

SBI Bank(new) a/c Dr. ××××

To Bank/cash a/c. ×××××

(being account opened with Cheque/cash)

Answer 2

Bank a/c -dr.
To cash a/c