Debit cash / bank
Credit loan from bank / bank overdraft
Debit cash / bankCredit bank overdraft
Hi, There is no journal entry for cash shortage as you can never have money less than 0. However if the credit side of the ledger is more than the debit side of the Cash book, the entry passed is Cash/Bank A/C dr......To Bank Overdraft A/C.
Journal entry for opening a bank account
Debit cashCredit bank
Because it's a form of debt. All debts are entered in the credit side of a journal.
Debit cash / bankCredit bank overdraft
For an overdraft, the journal entry would be to debit the bank account (increasing the overdraft liability) and credit the corresponding expense account or accounts that led to the overdraft. This reflects the additional amount drawn from the bank account beyond the available balance.
Hi, There is no journal entry for cash shortage as you can never have money less than 0. However if the credit side of the ledger is more than the debit side of the Cash book, the entry passed is Cash/Bank A/C dr......To Bank Overdraft A/C.
Journal entry for opening a bank account
Debit cashCredit bank
Because it's a form of debt. All debts are entered in the credit side of a journal.
interest allowed by bank
bank a/c to cash a/c
No entry at the time of payment by bank and entry is recorded when bank reconciliation with bank and information arrive from bank.
Debit owner capitalCredit bank
bank a/c dr to bank loan a/c
Debit expensesCredit cash / bank