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

Ledger Posting

In Bank Book/Bank Account.

In Cash Book/Cash Account.

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 :

Ledger Posting

In HDFC CA No.23234545

In Cash Book/Cash Account

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Related Articles :

Types of Account

Double Entry System of Book Keeping

Journal 

Ledger 

Trial Balance

Trading and Profit & Loss Account

Balance Sheet

Bank Reconciliation Statement