A business pays cash to purchase a certificate of deposit. The certificate matures after a term of 60 days and has a fixed annual interest rate of 2.5%. The journal entries to show the purchase and maturity are described.
A business maintains a checking account with a financial institution to allow it to make day to day deposits and withdrawals of cash. A cash deposit in bank journal entry is used to record the transfer of the physical cash held by the business to the bank account.
Last modified November 11th, 2019 by Michael Brown
When a business maintains an imprest system of petty cash it is necessary to replenish the fund at the end of an accounting period. A journal entry is used to record the petty cash expenditure incurred during the period and to reflect the cash used for replenishment.
A cash register reconciliation carried out by a retail business shows a cash overage arising from the difference between the cash receipts counted on the register and the sales recorded on the cash register tape.
A cash register reconciliation carried out by a retail business shows a cash shortage arising from the difference between the cash receipts counted on the register and the sales recorded on the cash register tape.
The bank reconciliation statement journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting relating to bank reconciliations.
In each case the bank reconciliation journal entries show the debit and credit account together with a brief narrative. For a fuller explanation of journal entries, view our examples section.
Last modified November 12th, 2019 by Michael Brown
The imprest system of petty cash is a method of accounting for petty cash expenses. Under the system, the petty cash fund balance is always restored at the end of the accounting period back to its original amount. At any one time the cash held plus the petty cash vouchers should always be equal to the original fixed imprest amount.
Last modified November 29th, 2022 by Michael Brown
A commercial line of credit is an agreement between a business and a bank to allow the business to utilize a bank facility up to a maximum agreed value as and when they need it during a specified term.