Question

Opened bank account with bank of india

Answer 1

Since there is no information regarding initial deposit we cannot consider it to be quantitative information.. Opening a bank account is a qualitative information that has no place in the books of accounting ..So there will not be any entry in the books...bank accounts are of many types(like zero balance account) where there is no initial outflow of cash is possible....

Suppose if there is an initial deposit then this is the treatment

The journal entry for given Transaction Will be

Bank account. Dr xxxx

To cash a/c. xxxx

( being account opened with bank).

Second Golden rule of accounting...

Real account -Debitwhat comes in , credit what goes out..

here cash and Bank are Real accounts (all assets and Liabilities come under Real account)

in contention with the above rule

since, cash in bank is coming in/ increasing we ll debit it, and cash in hand is Going out/decreasing, we ll credit it...