Accounting treatment for Cash Deposit into Bank

Cash deposit is an important accounting transaction in business organisations. In this article let's know about the Accounting treatment for Cash Deposit into Bank with Example.

Related Books of Account for Cash Deposit into Bank Account:

  1. Bank Book/Bank Ledger Account

  2. Cash Book/Cash Ledger Account 

The Ledger Accounts involved in this transaction.

Debit Account : 

  • Bank Account

Credit Account :

  • Cash Account

Journal Entry

Journal Entry for Cash Deposit into Bank Account.

Ledger Posting

In Bank Book/Bank Account.

Cash deposit into Bank - Posting in Bank Ledger Account.

In Cash Book/Cash Account.

Cash Deposit into Bank - Posting in Cash Book.

Example :

In the Books of M/s. Shankar Entertainment, Cash deposited into HDFC Bank Current Account No-00023234545 for ₹1,50,000/- on dt.05/01/2022. Pass necessary Journal Entry and post them into respective Ledger Accounts.

Debit Account :

  • HDFC CA No.- 23234545

Credit Account :

  • Cash Account

Journal Entry :

Journal Entry for Cash Depsoit into Bank Account.

Ledger Posting

In HDFC CA No.23234545

Cash deposited into Bank Account - Posting in Bank Account.

In Cash Book/Cash Account

Cash deposit into Bank Account - Posting in Cash Book.

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Location: Cuttack, Odisha, India

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