BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cash A/C (Debit)-To Bank A/C (Credit)
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Bank A/C (Debit)-To Capital A/C (Credit)
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Bank A/C (Debit)-To Cash A/C (Credit)
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Cash A/C (Debit)-To Capital A/C (Credit)
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Detailed explanation-1: -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 .
Detailed explanation-2: -The money deposited into your checking account is a debit to you (an increase in an asset), but it is a credit to the bank because it is not their money. It is your money and the bank owes it back to you, so on their books, it is a liability.
Detailed explanation-3: -A cash deposit into a bank journal entry is a contra entry, and it’s a contra account because this transaction does not affect the business operations. After all, the net effect is zero. We can record the transaction by debiting the bank account and crediting the cash account.
Detailed explanation-4: -The cash account is debited because cash is deposited in the company’s bank account. Cash is an asset account on the balance sheet. The credit side of the entry is to the owners’ equity account. It is an account within the owners’ equity section of the balance sheet.
Detailed explanation-5: -Cash deposited with bank is affect both cash and bank therefore, it is a contra entry.