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| Cash Deposited Into Bank Journal Entry |
When a business deposits cash into a bank, then the company needs to record the transaction in its accounting records.
Journal Entry for Cash Deposit into Bank
Bank Account Debit
Cash Account Credit
- The "Bank Account" is debited because of reflects the increase in the company's bank balance i.e. Asset.
- The "Cash" account is credited because of shows the reduction in the company's cash in hand i.e. Asset Balance.
This journal entry reflects the deposit of cash into the bank, and increasing the company's bank balance, and decreasing the cash balance.
