Journal Entries | Banking Transactions (Part-2)

1. Payment is received through cheque, and a discount is allowed.

A. When a cheque is received from a person, and a discount is allowed to him (Cheque is deposited into the bank on the same day):

Journal Entry: 

Example: Received a cheque of ₹19,400 from Vishal and deposited it in the bank, and offered him a discount of ₹600.

Solution:

B. If the above cheque gets dishonoured:

 Journal Entry: 

Example: Vishal's cheque which was sent to the bank for collection, and got dishonoured. 

Solution:

2. When a payment is made through cheque:

 Journal Entry: 

Example: Paid to Akanksha through cheque ₹8,000.

Solution:

3. When expenses are paid through cheque:

 Journal Entry: 

Example: Rent paid through cheque ₹800.

Solution:

4. When interest is charged by the bank:

 Journal Entry: 

Example: Interest charged by bank ₹500.

Solution:

5. When interest is allowed by the bank:

 Journal Entry: 

Example: Interest allowed by bank ₹1,000.

Solution:

6. When a bank charges any amount for the services rendered:

 Journal Entry: 

Example: Bank charges ₹50.

Solution:

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