Question

what will be the journal entry when we sell a good for cash and then deposit it in the bank?​

Answer 1

Answer:

cash account debit to sales

bank account debit to cash

Answer 2

Answer:

Two journal entries here -

Two journal entries here -Journal 1 - Debit Undeposited Funds (or Cash Received if you have an Asset account set up under this kind of name)/Credit Income Account (whatever your Income account is in your chart) - this highlights that you have sold something and the buyer has paid you cash for it (which is currently “sitting in your pocket” so to speak).

Two journal entries here -Journal 1 - Debit Undeposited Funds (or Cash Received if you have an Asset account set up under this kind of name)/Credit Income Account (whatever your Income account is in your chart) - this highlights that you have sold something and the buyer has paid you cash for it (which is currently “sitting in your pocket” so to speak).Journal 2 - Credit Undeposited Funds (or Cash Received)/Debit Bank Account - this highlights that you have taken the cash “out of your pocket” and put it in to your bank account.

Explanation:

The transaction can be treated in two ways depending on its condition

1 if the cash proceeds received before deposited to the bank

Debit Cash Account and credit sales Account

Debit Bank Account and Credit Cash Account

2 if the proceeds is deposited directly to the bank

Debit Bank Account and Credit Sales Account

the 2nd method will hold since the money is directly paid to the Bank and the cash account is not in any means affected.

hope this would be helpful to you