The bank transaction journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of banking transactions.
In each example the bank transaction journal entries show the debit and credit account together with a brief narrative.
For a fuller explanation of bank transactions and journals, view our cash and cash equivalent tutorials.
Bank Transaction Journal Entries Examples
The bank account referred to in these journal entries is a separate account in the general ledger for a specific named bank account and would be shown under the balance sheet heading of cash and cash equivalents.
Customer check deposited into bank journal entry
Account
Debit
Credit
Bank
XXX
Accounts receivable
XXX
Check payment made to a supplier
Account
Debit
Credit
Accounts payable
XXX
Bank
XXX
Cash withdrawal from bank journal entry
Account
Debit
Credit
Cash
XXX
Bank
XXX
Bank charge journal entry
Account
Debit
Credit
Bank charges
XXX
Bank
XXX
Cash withdrawal from bank for personal use journal entry
Account
Debit
Credit
Drawings
XXX
Bank
XXX
Deposited cash into bank journal entry
Account
Debit
Credit
Bank
XXX
Cash
XXX
Bank interest journal entry
Account
Debit
Credit
Interest expense
XXX
Bank
XXX
Journal entry for opening bank account with cash
Account
Debit
Credit
Bank
XXX
Cash
XXX
Journal entry for interest received from bank
Account
Debit
Credit
Bank
XXX
Interest income
XXX
Journal entry for bank service charge
Account
Debit
Credit
Bank service charges
XXX
Bank
XXX
Journal entry for loan borrowed from bank
Account
Debit
Credit
Bank
XXX
Loan
XXX
Journal entry for fund transfer from one bank to another
Account
Debit
Credit
Bank account 1
XXX
Bank account 2
XXX
Bank credit memo journal entry for interest income
Account
Debit
Credit
Bank
XXX
Interest income
XXX
Bank debit memo journal entry for bank fees and charges
Account
Debit
Credit
Bank fee expense
XXX
Bank
XXX
Popular Double Entry Bookkeeping References
This bank transaction journal entries reference is one of many popular references from the double entry bookkeeping reference guide, discover another at the links below.
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.
