Accounting treatment for Cash Withdrawal from Bank

Let's know about Financial Accounting entries with Record keeping procedure for Cash withdrawal from Bank Account.

When a business organisation/any person draws Cash from Bank Account, they have to maintain the following Books of Account.

• Journal Register
  

• Bank Book/Bank Ledger Account

• Cash Book/Cash Ledger Account.

In the transaction for Cash Withdrawal from Bank Account, affected Ledger Accounts are,

Debit Account :

• Cash Account

Credit Account :

• Bank Account

Journal Entry

Ledger Posting

In Cash Book/Cash Account.

In Bank Book/Bank Account.

Example :

In the Books of M/s. Shankar Entertainment, Cash withdrawn from HDFC Bank Current Account No-00023234545 for ₹25,000/- on dt.12/01/2022. Pass necessary Journal Entry and post them into respective Ledger Accounts.

Debit Account :

• Cash Account
  

Credit Account :

• HDFC CA No.- 23234545

Journal Entry :
 

Ledger Posting

In Cash Book/Cash Account.

In Bank Book/Bank 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