Dear reader, are you looking to know how to pass a journal entry for cash deposited into bank? Then you came to the right article. In this article, you will get to know about how to pass the journal entry for depositing cash into bank. This article is written after referring 11 blogs on this topic.
Before passing the journal entry, you should know a few things: every company deposit excess cash into bank. Depositing cash into bank ensure the safety of the money. It’s one of the transactions which took place on everyday basis in all organizations. You can say it’s one kind of CONTRA entry because it doesn’t affect any business operations and net effect of this transaction is zero.
JOURNAL ENTRY FOR CASH DEPOSIT INTO BANK
BANK Account Debit
CASH Account Credit.
In this case Bank Account is personal account so debit is the receiver rule is applicable here. Cash is a real account, credit goes out rule applicable here.
In simple words, company deposit excess cash into bank. This kind of transactions take place on every day basis. Passing the journal entry include the following steps
Step 1: You need to check which bank you are depositing cash.
It’s because companies having two to three bank
Step 2: You need to debit the particular bank account and credit
to cash account.
Step 3: Effect of this entry is it will increase the bank account
balance and decrees the cash balance.
CASH DEPOSIT INTO BANK EXAMPLE
ABC company deposit cash of ₹ 1,00,000/- into XYZ Bank.
We need to pass the following Journal entry for this transaction.
XYZ Bank Account debit for ₹ 1,00,000
CASH Account credit for ₹ 1,00,000.
(Being cash deposited into XYZ Bank)
Dear reader in this article you get to know about Journal Entry for Cash Deposited into bank account. Hope you understood the things better. If you have any query regarding this article kindly comment below.
What is the journal entry of deposited 5000 in bank?
For this you need to pass journal entry
Bank Account debit for Rs 5000 and
Cash Account credit for Rs 5000.
Is cash deposited in bank debit or credit?
In this case Cash Account is credited and Bank Account is debited.
Cash Deposited into bank 50000
In this you need to pass the following journal entry
Bank Account Debit for Rs 50000
and Cash Account Credit for Rs 50000.