Cheque received journal entry

*Cheque received from customer or Debtor and not deposited same day into the bank. Following Journal entry will be passed:

Cash A/c Dr
To Customer’s/Debtor’s A/c
(Cheque received from customer/Debtors)
Explanation:
If a Cheque is received from a customer and not immediately sent to the bank, in such a case, a journal entry will be passed as a cash receipt.
For Example- Cheque received from Ramesh ₹50,000 was not deposited into the bank on the same day.
Journal entry:-
Cash A/c  Dr  50,000
To Ramesh’s A/c 50,000
(Cheque received from Ramesh)
Two accounts are affected:
1. Cash Account (Assets)
2. Ramesh (Debtors) Account (Assets)
Rules of Assets account: Assets Increase debit, Assets Decrease credit.
The asset increases in the form of cash, hence the cash account is debited as per the rules.
Assets Decrease in the form of Debtors, hence Debtor’s Account is Credited as per the rules.

Also read : Golden Rules Of Accounting

Cheque received journal entry
*Cheque received from customer or Debtor and deposited same day into the bank recorded debit side of bank column in cash book. Following Journal entry will be passed:

Bank A/c Dr
To Customer’s A/c
(Cheque received from customer  and deposited same day into the bank)
For Example- Cheque received from Suresh ₹50,000 was deposited into the bank on the same day.
Journal entry:-
Bank A/c Dr 50,000
To Suresh’s A/c 50,000
(Cheque received from Suresh and deposited same day into the bank)
Two accounts are affected:
1. Bank Account (Assets)
2. Suresh (Debtors) Account (Assets)
Rules of Assets account: Assets Increase debit, Assets Decrease credit.
The asset increases in the form of Bank, hence the Bank account is debited as per the rules.
Assets Decrease in the form of Debtors, hence Debtor’s Account is Credited as per the rules.
Cheque received journal entry

Salary paid Journal Entry

*Cheque received from customer or Debtor and deposited on another day into the bank. Following Journal entry will be passed:

Bank A/c Dr
To Cash A/c
(Earlier received Cheque deposited on another day into the bank)

Explanation: When a pre-received Cheque is deposited in the bank, an entry is made in the same manner as for depositing cash into the bank.

A Cheque which we received a week ago from Dinesh ₹20,000  deposited into the bank today.
Journal entry:-
Bank A/c Dr 20,000
To Cash A/c           20,000
(Earlier received Cheque received from Dinesh deposited into the bank today)
Two accounts are affected:
1. Bank Account (Assets)
2. Cash Account (Assets)
Rules of Assets account: Assets Increase debit, Assets Decrease credit.
The asset increases in the form of Bank, hence the Bank account is debited as per the rules.
Assets Decrease in the form of Cash, hence Debtor’s Account is Credited as per the rules.
Cheque received journal entry

Double Column Cash Book (Cash and Bank)

Things to keep in mind while preparing Double Column Cash Book:

• Cash Account is an Assets  Account as per the Modern Approach the rules of debit and credit applicable to Assets Account” Increase in assets debited and Decrease in assets credited” 
• Cash Account is a Real Account as per the Traditional  Approach the rules of debit and credit applicable to Real Account” Debit what comes in Credit what goes Out” 
• All cash receipts are recorded on the debit side (Receipts Side) of cash book in ‘Cash Column’. 
• All cash payments are recorded on the credit side(Payments Side) of cash book in ‘Cash Column’.
• Bank Account is an Assets  Account as per the Modern Approach the rules of debit and credit applicable to Assets Account” Increase in assets debited and Decrease in assets credited” 
• Bank  Account is a Personal Account as per the Traditional Approach the rules of debit and credit applicable to Real Account” Debit what comes in Credit what goes Out” 
• For cash deposited into the bank, the Bank balance increases or the bank is receiver and therefore is debited in the bank column of cash book.
• For cash withdrawal from the bank, the Bank balance decreases or the bank is giver and therefore is credited in the bank column of cash book.
• Cash column will either have debit balance or Nil balance.
• Bank Column may have debit balance or credit balance.
• Cheque received from customer or Debtor and deposit same day into the bank recorded debit side of bank column in cash book. Following Journal entry will be passed:

Bank A/c Dr
To Customer’s A/c

Cheque received journal entry

• Goods sold and amount deposited same day into the bank recorded debit side of bank column in cash book. Following Journal entry will be passed:

Bank A/c Dr
To Sales A/c

• Cheque received from customer or Debtor and not deposited same day into the bank. Following Journal entry will be passed:

Cash A/c Dr
To Customer’s A/c

• Cheque received from customer or Debtor and deposited on another day into the bank. Following Journal entry will be passed:

Bank A/c Dr
To Cash A/c

• Expenses paid by Cheque recorded credit side bank column of cash book in. Following Journal entry will be passed:

Expenses  A/C   Dr
 To Bank  A/C   

• Amount paid by Cheque to creditors recorded credit side bank column in cash book . Following Journal entry will be passed:

 Creditors  A/C   Dr
  To Bank  A/C     

•  Direct Deposit by a customer into the Bank recorded debit side of bank column in cash book. Following Journal entry will be passed:

Bank  A/C  Dr.
To Customer’s A/C

Cheque received journal entry

• If Opening balance of cash is given, it will be written on the debit side of the cash book in cash column as To Balance b/d
• If Opening balance of Bank Account ( Debit) is given, it will be written on the debit side of the cash book in Bank column as To Balance b/d
• If Opening balance of Bank Account (Credit Or Overdraft) is given, it will be written on the Credit side of the cash book in Bank column as By Balance b/d

Cheque received journal entry