Question

What is the journal entry for cheque received from Ramesh

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Bank A/c - Personal  A/c , where banker receiver the cheques ( cash equivalent)  therefore its debited

Ramesh A/c - personal A/c - where ramesh gives  the money to us , hes the giver therefore its credited

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Journal entry

Bank A/c  Dr  

         To Ramesh A/c  

(being cheque received from ramesh )

Answer 2

Bank A/C        Dr.

     To Ramesh A/C

(Being cheque received from Ramesh)  

• Journal keeps a detailed record of all the financial transactions of the business.  
• One can maintain a journal in two ways namely double entry method for single entry method.
• The basic purpose of a journal is to record all the financial transactions. It is the basic book where all the financial records are kept for future purposes.  
• These transactions are then recorded in the official accounting records known as the ledger account.