what is journal entry for Deposited into bank
Answers
Answer:
bank a/c. dr
to cash a/c
Answer:
Everybody puts their extra money in their bank accounts. Cash is safest when it is deposited in a bank account, which will also earn interest for the company.
Explanation:
One of the most frequent transactions in every entity's daily business operations is the deposit of cash in the bank. Therefore, it is crucial to understand the relevant journal entry.
According to "Modern principles" of accounting, the following is the journal entry for Deposited into bank:
Bank A/c Debit Asset Debit the increase in asset
To Cash A/c Credit Asset Credit the decrease in asset
When cash is received, usually as a result of earning revenue or receiving payments from receivables, it is recorded. A cash deposit into a bank does not count as an outside transaction. Therefore, when a client deposits money, the bank must reimburse the deposit in accordance with the agreed-upon terms according to the rule for journal entry: debit cash account and credit customer account.
Thus, on the basis of the subsidiary book or scroll, a general ledger posting is automatically made from a journal entry to the relevant general ledger under the consolidated deposit account.