Question

what is the journal entry of deposit cheque into bank

Answer 1

Answer:

BANK A/C DR

TO CASH

Explanation:

IF WE DEPOSIT THE CHEQUE WHICH WE RECEIVED EARLIER, THEN AT THE TIME OF RECEIVING CHEEQUE , IS TREATED AS CASH, AND LATER ON WE DEPOSIT IN BANK , HENCE THE CASH DEPOSITED.

Answer 2

Answer:

Explanation:

The journal entry is shown below:

Bank A/c Dr  

  To Cash A/c

(Being cheque deposited to the bank)

The bank balance is an increase so it is debited and the cash balance is decreased so the cash balance should be credited. It affects the asset side of the balance sheet in both positive and in a negative manner.