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.
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.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in 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.
