Journal entry for bank overdraft


Laxmi (Student)     04 May 2011

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What is the journal entry for bank overdraft in firms book and also what is the entry passed by bank in their books?

What is the journal entry for dishonour of cheque in firm's books and in bank account?

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Devendra (Chartered Accountant)     04 May 2011

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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

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Laxmi (Student)     04 May 2011

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Thanks Devendra,

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

 

Plz answer for entries for dishonour of cheque?

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Devendra (Chartered Accountant)     04 May 2011

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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

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Devendra (Chartered Accountant)     04 May 2011

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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

Mayson (Others)     15 July 2015

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hi devendra the first entry u wrote is for cash deposit i.e. cash a/c...dr to bank od a/c...cr. am i right?

Mayson (Others)     15 July 2015

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hey devendra which is the debit and credit side in bank statement ... deposit and withdrawl? also i would like to know that when is dishonoured means cheque return rite? so entry would be bank charges...dr. to bnk od...cr.

JYOTI GUSAIN (ACCOUNTANT)     02 June 2017

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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)

JYOTI GUSAIN (ACCOUNTANT)     02 June 2017

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Dishonoured entry

Debtor a/c Dr

To bank a/c.....

Naitik mishra (Bareilly)     13 September 2018

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What about in internal reconstructi


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