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

Journal Entry for Cash withdrawal from Bank.

Ledger Posting

In Cash Book/Cash Account.

Cash withdrawal from Bank Account - Posting in Cash Account.

In Bank Book/Bank Account.

Cash withdrawal from Bank Account - Posting in 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In the Books of M/s. Shankar Entertainment, Cash withdrawn from HDFC Bank Current Account No-00023234545 for ₹25,000/- on dt.12/01/2022.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 :
 

Journal Entry for Cash Withdrawal from Bank Account.
Ledger Posting

In Cash Book/Cash Account.

Cash withdrawal from Bank Account - Posting in Cash Account.
In Bank Book/Bank Account.

Cash withdrawal from Bank Account - Posting in Bank Account.

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Location: Cuttack, Odisha, India

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