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Journal Entry

Please write journal entry and explain given below transaction is of passbook at bank or cash book of account holder. "Dear bank User, ur A/cX111 - debited by Rs 1000 on 11 -8-2020."


Hari Krishna

Hari Krishna

CA Foundation

1K+

09-Sep-20 21:18

25

Answers (1)

Best Answer

Generally we receive these type of messages mentioned above to the registered mobile numbers which are linked to bank accounts. This message indicates that the customer account is debited in bank books of accounts(passbook is a copy of account of customer in the bank). Customer deposits money in the bank, such money should be returned to the customer as on request of customer. From this it clearly depicts that the customer is creditor for bank So customer a/c will be of credit balance(deposited amount) in bank books if he draws money the liability of bank will be reduced. so, to reduce credit balance it will be debited such that the balance in bank account will be reduced. There are two types of account formats i) T shaped accounts ii) Running balance form of accounts The second type of accounts are used in banks which you can see in bank passbooks. Journal entry in the books of customer, Expense/Asset/Drawings a/c....Dr 1000 To Bank a/c. 1000 (Being expense/Asset/Drawings made through bank) Journal entry in the books of Bank, Customer a/c.... Dr. 1000 To cash a/c. 1000 ( Being cash drawn by customer) If the bank customer issues any cheque to his creditor and he presents such cheque on a later date NO ENTRY is required in the books of Bank customer, because it is already recorded on the transaction date. Hope it helps!!!


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

09-Sep-20 23:09