Bank and Cash

purchase certificate of cash deposit

Certificate of Deposit in Accounting

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.

Last modified July 16th, 2019 by Michael Brown
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cash deposit bank journal entry

Cash Deposit Bank Journal Entry

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
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petty cash replenishment accounting equation

Petty Cash Replenishment

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.

Last modified November 8th, 2019 by Michael Brown
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cash over journal entry accounting equation

Cash Over Journal Entry

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.

Last modified August 8th, 2019 by Michael Brown
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cash shortage journal entry accounting equation

Cash Shortage Journal Entry

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.

Last modified January 17th, 2020 by Michael Brown
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term deposit journal entries

Term Deposit Journal Entries

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.

Last modified November 12th, 2019 by Michael Brown
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fixed deposit journal entry accounting equation

Fixed Deposit Journal Entry

A business uses term deposits to earn interest on surplus cash, and records a fixed deposit journal entry to reflect the transfer of cash from its current account to a fixed deposit account.

Last modified January 17th, 2020 by Michael Brown
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bank reconciliation journal entries

Bank Reconciliation Journal Entries

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
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paid cash for supplies

Paid Cash for Supplies

When a business purchased supplies for cash, they were recorded as supplies on hand and carried as a current asset in the balance sheet of the business until consumed.

Last modified November 19th, 2019 by Michael Brown
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imprest petty cash balance sheet

Imprest Petty Cash

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
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line of credit

Line of Credit

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.

Last modified March 10th, 2023 by Michael Brown
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cashiers check

Cashiers Check

A bank will charge a customers account with the amount of the required check and then provide the cashiers check drawn on the bank’s own funds and signed by a cashier.

Last modified July 19th, 2020 by Michael Brown
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