Book keeping .. plz help

zainab

hi ...

do any one know the entry for this transactions in the cash book???



Jan 2 Deposited to bank current account as initial deposit 12,000



is it in the Dr side or Cr of the cash book??


Plz help me ... :crying:

shawn michaels

Dr Cash Book (Bank entry from what your saying)
Cr Capital/Sales/VAT etc

zainab

no no no .. no vat and sales .. it is only a Deposited


this is the entry ..
Deposited to bank current account as initial deposit 12,000



how to recored a Deposited?? in a cash book ..

is it a liability?? or what?? and if I am paying a deposited to my account .. is it like my cash is decreasing ??

so I have to cr the cash .. and Dr the deposited account??

or

Dr the cash Cr the deposited because it is a liability??

shawn michaels

If you mean by initial deposit as an initial investment into the business then that would be classed as capital:

So Dr Cash Book (Bank/Cash etc)
Cr Capital

Capital is a liability in the accounts so it's due to who ever invests into the business and withdrawn from the business via "drawings" transactions on the accounts. Hope this helps.

zainab

ok .. thanks a looooooooooot my dear .. :thumbup::thumbup:

I hope it is the right answer :001_rolleyes:

mikes

Deposited is another way of saying "payed into" rather than an actual ledger account.

zainab

but if I want to post it to the ledger account .. would it be in the capital acoount .. or Deposited account??


Thanks for all of you help .. and reply :001_smile:

blobbyh

As Shawn has already stated, both are entries on the entity's balance sheet. The cash paid in is a debit asset - deposit/current bank account - while the opposing double entry is the credit liability - capital account.

We're correct - trust us.

zainab

Thanks ..

:001_smile: