Cheque Received And Deposit Journal Entry

Cheque / Check received and deposited into bank involves two types of journal entries.

(i) Journal Entry For Cheques Received But Not Deposited Into Bank

(ii) Journal Entry For Cheques Received And Deposited Into Bank

In the first type of entry we debit Cash Account and credit Accounts Receivable / Debtor Account from whom the cheque is received.

                                               Cash a/c  XXX

                                                               Accounts Receivable a/c  XXX

                                               (Cheque Received from Customer)

 

The second entry involves the debit of bank account instead of cash account as it is deposited into bank account and credit the accounts receivable account.

 

                                                  Bank a/c  XXX

 

                                                                  Accounts Receivable a/c  XXX

 

                                        (Cheque Received And Deposited Into Bank)

 

Example, Mr. A, a sole trader, received cheque from Mr. B, a customer, of Rs. 5000, then the entry is shown below:

                                                             Cash a/c 5000

 

                                                                          Mr. B  5000

 

                                        (Cash Received from Customer, Mr. B)

 

Now, let suppose, Mr. A deposited this cheque received of Rs. 5000 into bank account on the same date, then we change the above entry with the below one:

                                                         Bank a/c  5000

 

                                                                       Mr. B  5000

 

                                                (Cheque Deposited into Bank)