< b="" />Recording Cash Deposit in Bank's Books< />
Bank records the cash deposit transaction in its books in the following steps:
< b="" />1. Receipt of Cash< />
- When a customer deposits cash into the bank, the bank receives the cash along with a deposit slip that includes details such as the customer's name, account number, and the amount deposited.
< b="" />2. Verification and Counting< />
- The bank teller verifies the details on the deposit slip with the cash received and counts the cash to ensure that the amount matches the deposit slip.
< b="" />3. Entry in Cash Receipts Journal< />
- The bank then records the cash deposit in its cash receipts journal, which is a book used to record all cash inflows. The entry includes details such as the date of the deposit, the customer's name, account number, and the amount deposited.
< b="" />4. Posting to General Ledger< />
- The cash deposit transaction is then posted to the bank's general ledger, which is a complete record of all financial transactions. The entry includes debiting the cash account and crediting the customer's account for the amount deposited.
< b="" />5. Updating Customer's Account< />
- Finally, the bank updates the customer's account balance to reflect the cash deposit. The customer can then access the deposited funds through withdrawals or other transactions.
By following these steps, the bank accurately records cash deposits in its books and ensures that customer accounts are updated accordingly.