The ledger entries to be made if cash sales is banked is debit
Question 1 Report
The ledger entries to be made if cash sales is banked is debit
Answer Details
The ledger entry to be made if cash sales is banked is "bank, credit cash."
When a business makes a cash sale, the cash received from the customer is considered an asset for the business. To record this transaction, the business would debit the "cash" account to increase its cash balance and credit the "sales" account to recognize the revenue earned from the sale.
However, when the cash is then deposited into the bank, the business must make another ledger entry to reflect this change. The business would debit the "bank" account to increase the bank balance and credit the "cash" account to decrease the cash balance, since the cash has now been transferred to the bank.
In summary, the ledger entry for banked cash sales would be:
Debit: Bank
Credit: Cash
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