Explanation:
What is the journal entry for cash sales deposited to bank?
The transaction can be treated in two ways depending on its condition
1 if the cash proceeds received before deposited to the bank
Debit Cash Account and credit sales Account
Debit Bank Account and Credit Cash Account
2 if the proceeds is deposited directly to the bank
Debit Bank Account and Credit Sales Account
the 2nd method will hold since the money is directly paid to the Bank and the cash account is not in any means affected
If u sale goods on cash & if u deposited cash on bank on the same day.. Then u can simply pass following journal entry:
Bank A/c Dr.
To sales A/c
If u deposit cash on another day of sale made then u have to pass to entries
1 Sale made,
Cash A/c Dr
To sale A/c
2 cash deposited into bank.
Bank A/c Dr.
To cash A/c
Two journal entries here -
Journal 1 - Debit Undeposited Funds (or Cash Received if you have an Asset account set up under this kind of name)/Credit Income Account (whatever your Income account is in your chart) - this highlights that you have sold something and the buyer has paid you cash for it (which is currently “sitting in your pocket” so to speak).
Journal 2 - Credit Undeposited Funds (or Cash Received)/Debit Bank Account - this highlights that you have taken the cash “out of your pocket” and put it in to your bank account.
I hope this helps.
What is the journal entry for cash sales of Rs. 15,000 which Rs. 12,000 was deposited in the bank the next day?
If there is a transaction (cash sales and received a ₹1000 cheque for it), what will be the entry in the cash book? Why?
I deposited Rs. 5000 in a bank. What is a journal entry?
The entry for cash sales will be: Cash a/c Dr. and sales a/c Cr.
The entry for cash deposit into bank will be: Bank a/c Dr. and Cash a/c Cr.
First of all, you are talking about a regular transaction, not a journal entry. Journal entries are more like accruals, depreciation, corrections, etc.
The entry is as follows:
Debit Cash $500
Credit Sales $500
To record cash sales.
There are 2 transactions here
On selling/ receiving the cash:
Dr. Cash account ledger
Cr. Sales account ledger
2. On banking the cash:
Dr. Bank account ledger
Cr. Cash account ledger
Generally, cash would be debited, and if something is sold on credit, a receivable would be credited. Cash sales would debit cash, and credit sales.
while it is dangerous in term of internal control receiving payment in cash. but the journal should be
Db cash
CR account receivable
then transfer to bank
Db bank
Cr cash
