Tell me cash withdrawal and deposit entry.

Question

Accepted Answer

Cash withdrawal and deposit entries are recorded in the cash book to track the movement of cash in and out of the business.

Cash withdrawal entry involves debiting the cash account and crediting the relevant expense or liability account.
Cash deposit entry involves debiting the relevant asset or liability account and crediting the cash account.
Both entries should include the date, amount, and description of the transaction.
For example, a cash withdrawal of $500 for office supplies would be recorded as a debit to the office supplies expense account and a credit to the cash account.
On the other hand, a cash deposit of $1,000 from a customer would be recorded as a debit to the accounts receivable account and a credit to the cash account.

Accepted Answer

1. withdrawal Cash A/c Dr to Bank A/c Cr 2. Deposit  entry-  Bank A/c Dr to Cash CT.

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