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Transferred from current account to fixed deposit account in the bank 5000. Make journal for this?
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Transferred from current account to fixed deposit account in the bank ...
Journal Entry for Transferring 5000 from Current Account to Fixed Deposit Account


Explanation:


When an amount is transferred from a current account to a fixed deposit account, it is considered as a cash outflow from the current account and a cash inflow in the fixed deposit account. The journal entry for this transaction will be as follows:


Journal Entry:



  • Debit: Fixed Deposit Account (5000)

  • Credit: Current Account (5000)



Explanation of the Journal Entry:



  • Debit: Fixed Deposit Account (5000) - This account is debited because the amount has been transferred from the current account to the fixed deposit account, which means it is a cash inflow in the fixed deposit account.

  • Credit: Current Account (5000) - This account is credited because the amount has been transferred from the current account to the fixed deposit account, which means it is a cash outflow from the current account.



Conclusion:


Transferring money from a current account to a fixed deposit account is a common practice for individuals and businesses to earn interest on their savings. Proper accounting and recording of these transactions is essential to maintain accurate financial records.
Community Answer
Transferred from current account to fixed deposit account in the bank ...
Investment A/c Dr 5000 To bank A/c 5000
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Transferred from current account to fixed deposit account in the bank 5000. Make journal for this?
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Transferred from current account to fixed deposit account in the bank 5000. Make journal for this? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Transferred from current account to fixed deposit account in the bank 5000. Make journal for this? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Transferred from current account to fixed deposit account in the bank 5000. Make journal for this?.
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