Cash at Bank Journal Entry – Accounts

Cash at Bank Journal Entry

Cash at Bank Journal Entry is passed, when a business or person, either deposits cash in the bank or withdraws cash  from the bank, i.e, : –

  •  Withdrawal from Bank
  •  Deposit in the Bank




Cash at Bank Journal Entry  –  Withdrawal from Bank

Question 1 : – 

What would be the Journal Entry for withdrawal of Rs.   10,000 in Cash from Bank  ?

Explanation:

Bank is an Asset, on receipt of cash from Bank,Bank’s A/c would be credited, as there is a decrease inBank Balance, which is an asset . According to the Rules of Debit and Credit, when an asset is decreased, the asset account is  credited .

Further , receipt of money from Bank  in Cash , it results in increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited.

Hence the  entry would be : –

Cash A/c Dr. 10,000
To Bank A/c 10,000

Cash at Bank Journal Entry  –  Deposit in the Bank

Question 2: – 

What would be the Journal Entry for deposit of Rs.   10,000 in Cash in the Bank  ?

Explanation:

Bank is an Asset. On deposit of cash in the  Bank, the balance of Bank would increase. According to the Rules of Debit and Credit, when an asset is increased, the asset account is  debited . So Bank A/c would be debited.

Further , on deposit of cash in the  Bank, , it results in decrease of Cash, which is an Asset. When an asset is decreased, the asset account is credited according to the Rules of Debit and Credit. So Cash A/c would be credited .

Hence the  entry would be : –

Bank  A/c Dr. 10,000
To Cash A/c 10,000




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