Cash Entry: if cash deposited at bank by a customer

 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.

sorry  Bank a/c dr.

          To customer a/c

No friend ( Rajendra Nath) your entry is wrong it is like this...

On 3rd April the entry is

Cheque-in-hand a/c     Dr.

To Debtors A/c

On 5th April when u deposited the cheque in bank the entry is

Bank A/c     Dr.

To Cheque-in-hand a/c

I agree with Dheeraj Sondhiya, he is right

AGREE WITH DHEERAJ

if u want to work as well professional, always follow journal entry rule-which will simplfy to know the report as required by you.

if you directly credit customer a/c with bank then at the year end, you will not able to see the report-how much cash/cheque received by customer.

first entry is also correct but not good as compared to second entry.

Dear Mr. DVD

I am agree with Nishant Jain and transaction will be supported by deposit slip only for both like company and client.

Hi. DVD

The first entry is correct because there is no cash receival in the hands of the company.

and there is no restriction for depositing cash by a third party in company's account.

so u can make the first entry and i also apply the same.

byeeeeeeeeeeeeeeee

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

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.

  Thanks frnd  Dheeraj Sondhiya

FIRST ENTRY IS CORRECT

First is the right entry

if cash deposited in bank our self

bank a/c ............dr

to cash a/c

or

cash a/c................dr

to bank a/c

pls explain me