What would be the entry if rajesh cheque endorsed to anil and deposited with bank the entire balance of cash after retaining Rs 1000 at office.
↵Hi Anjali,
The entries are as follows:
Rajesh’s cheque endorsed to Anil
Deposited into bank after retaining Rs 1,000 at office
Posting in the Cash Book
1. Rajesh’s cheque endorsed to Anil: On the date of receipt of cheque from Rajesh, it will be treated as Cash (shown on the debit side of Cash Book in Cash Column). On the date of endorsement, cash balance has to be decreased (shown on the credit side of Cash Book- Cash Column).
2. Deposited into bank after retaining Rs 1,000 at office: This is a contra entry wherein cash is deposited into bank. So, we have to increase the bank balance (shown on the debit side in Bank Column) and decrease the cash balance (shown on the credit side in Cash Column).
Note: To ascertain the amount to be deposited in the bank, deduct the total of credit side of Cash Column from its debit side. From the ascertained amount, deduct Rs 1,000 and you will get the amount to be banked.
Hope, this'll help you in recording both the entries.
The entries are as follows:
Rajesh’s cheque endorsed to Anil
| Journal | ||||
| Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
| Anil | Dr. | |||
| To Cash A/c | ||||
Deposited into bank after retaining Rs 1,000 at office
| Journal | ||||
| Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
| Bank A/c | Dr. | |||
| To Cash A/c | ||||
Posting in the Cash Book
1. Rajesh’s cheque endorsed to Anil: On the date of receipt of cheque from Rajesh, it will be treated as Cash (shown on the debit side of Cash Book in Cash Column). On the date of endorsement, cash balance has to be decreased (shown on the credit side of Cash Book- Cash Column).
2. Deposited into bank after retaining Rs 1,000 at office: This is a contra entry wherein cash is deposited into bank. So, we have to increase the bank balance (shown on the debit side in Bank Column) and decrease the cash balance (shown on the credit side in Cash Column).
Note: To ascertain the amount to be deposited in the bank, deduct the total of credit side of Cash Column from its debit side. From the ascertained amount, deduct Rs 1,000 and you will get the amount to be banked.
Hope, this'll help you in recording both the entries.