Dear all 1st entry is correct bcoz we didn't recvd. cash physically then why we will dr. cash so,we have to take direct tranasaction simply customer direct dep.cash then cash dr. to customer.
Although 1st entry is correct but it should be kept in mind if it would have been the entry of cash payment excedding Rs. 20,000 instead of cash receipt then direct entry through bank not advisable as it would attracts disallowance of expenditure alngwith the penalty of concealment of transaction.
First entry is right because no cash is actually recd by the company & directly recd in bank from customer. Hence no cash inflow should be reflected in the books at the time of receipt.