ACCOUNTING ENTRIES IN BOOK OF COMPANY FOR CASH CREDIT AND OVERDRAFT

HI CAN SOMEONE HELP ME WITH ACCOUNT ENTRY FOR OVER DRAFT AND CASH CREDIT IN  COMPANY

IF THE ENTRY FOR OD AND CASH CRDEIT IS   BANK ACCOUNT DEBIT  TO OVER DRAFT OR CASH CREDIT ACCOUNT CREDIT ( OPENING BALANCE ACCOUNT )

WHAT WILL BE  JOURNAL ENTRY FOR MAKING PAYMENT TO SUPPLIERS AND  CASH DEPOSIT TO OVERDRAFT AND CC ACCOUNT

AND ALSO INTERST CHARGED BY THE BANK AND PAID

 

Replies (4)
Quick Summary
This discussion clarifies accounting entries for company cash credit and overdraft facilities. It explains how to record payments to suppliers, cash deposits into the overdraft/credit account, and the journal entry for bank interest charged and paid. The advice covers showing the credit balance on the balance sheet and provides specific debit/credit entries for each transaction type.

Suppliers dr.
Cr. Bank
1) Your Bank CC OD A/c will be Credit Balance , you have show under Loan's Liability side Balance sheet .


2) payment to supplier pass entry

Trader Creditors A/c Dr
To Bank CC/OD A/c Cr
( payment to supplier )

3) Transfer cash to CC/OD A/c pass
Contra entry

Bank CC/OD A/c Dr
To cash / Bank A/c Cr
( amount transferred to CC/OD A/c )

4 ) Interest on CC/OD A/c entry

Interest on CC A/c Dr
To Bank CC/OD A/c Cr
(payment of Interest )

If we credit bank cc account then what we will have to debit 

In case of cash deposit: 

CC A/c Dr. 

    To Cash A/c

In case of payment to supplier:

Supplier A/c Dr.

    To CC A/c

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