Question

what is the general entry of cash deposited in current account​

Answer 1

Answer:

A business normally maintains a separate account in its general ledger for a specific named bank account. The bank account is usually a checking account or current account with a financial institution and is used in day to day trading to make withdrawals and deposits. A cash deposit bank journal entry is required when a business takes cash and deposits it into the bank account using a paying in slip.

The bank account is a current asset and is included under the heading of cash and cash equivalents in the balance sheet of the business.

Explanation:

Suppose for example a retail business has made cash sales to customers amounting to 900. At the end of the trading day the business completes a paying in slip and deposits the amount at the local branch of its bank.

The accounting records will show the following bookkeeping entries to reflect the cash deposit bank journal entry.

Cash Deposit Bank Journal Entry

Account Debit Credit

Bank 900

Cash 900

Total 900 900