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.
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.
The term deposit journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of fixed term deposits.
In each case the journal entries show the debit and credit account together with a brief narrative.
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.
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.
The bank reconciliation process is a means of ensuring that the cash book of the business is reconciled to the bank statement provided by the bank. Take our basic bank reconciliation test to check out your knowledge of bank reconciliations used in double entry bookkeeping.
All petty cash transactions need to be supported by a petty cash voucher.
Together with attached invoices, receipts, and other paperwork, a petty cash voucher is used to support payments made from petty cash and will help a business to document and post petty cash book entries.