Journal entry for bank overdraft

In the given case, Bank Overdraft is a liability (ie. Credit balance in the Bank A/c). 

Following is the JV to be passed:-

(In the Books of the Firm)

Cash / Bank A/c         Dr.

       To Bank Overdraft A/c

(Being Overdraft received from Bank)

(In the books of Bank)

Bank Overdraft A/c    Dr.

       To Cash / Bank A/c

(Being Overdraft given to Customer).

Regards,

Devendra

Thanks Devendra,

So where does it appear in bank statement on debit side or credit side?

Plz answer for entries for dishonour of cheque?

In the bank's book it will be shown as receiable from the customer ie. on the Debit side.

Whereas in the firm's book it will be shown as payable to the bank ie. on the Credit side.

Regards,

Devendra

Following are the entries :-

(In the Firm's Books)

When payment is made to a Creditor trough Cheque.

Creditor A/c        Dr. 

      To Bank A/c

(Being payment made.)

When the cheque is dishonoured.

Bank A/c             Dr.

       To Creditor A/c

(Being cheque received back due to dishonour)

Regards,

Devendra

Its not the cash deposit entry. This is the entry for cash received from bank.(i.e overdraft)

Cash / Bank A/c         Dr.      

 To Bank Overdraft A/c (Being Overdraft received from Bank)

Dishonoured entry

Debtor a/c Dr

To bank a/c.....

Bank overdraft $500. Sir how to pass double entry