Bank deposits are typically recorded directly to the bank account ledger; if you use accounting software and assign incoming payments to the individual customer, each applicable account is automatically adjusted. However, if you run a business that doesn't keep track of income related to individual customers, you can record bulk deposits to the general journal with one simple entry. This method is applicable to businesses such as retail establishments that conduct many transactions each day.
Debit the cash account for the total amount of the deposit.
Credit the applicable sales or service revenue account for the total amount of the deposit.
Specify the bank account to which the deposit is being made in the "Name" section of the transaction if using accounting software.
Describe the transaction briefly in the "Memo" field or in a space beneath the written transaction. Include the applicable dates related to the income, the bank account name and any other identifying information.
- E. Preble; E. L. Preble Bookkeeping; Liverpool, New York
- "Financial & Managerial Accounting: The Basis for Business Decisions"; Jan Williams, Sue Haka, Mark Bettner and Joseph Carcello; 2010
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