Payments · Level: Basics
Journal entry: Cash withdrawn from the bank
Cash is taken from the bank for the till: an asset exchange from Bank to Cash.
Worked example
£1,900.00 is withdrawn from the bank account for the till.
Correct journal entry
Cash £1,900.00 / Bank £1,900.00
Debit
Cash£1,900.00
Credit
Bank£1,900.00
Why?
- Cash: asset increases → debit
- Bank: asset decreases → credit
Typical mistake
Confusing a withdrawal for the till with drawings.
Your turn
Three problems on exactly this case, with different numbers. Amounts work with or without separators, e.g. 2,400.00 or 2400.
Transaction
£1,000.00 is withdrawn from the bank account for the till.
Debit
Assets up · expenses · liabilities down
Total debit£0.00
Credit
Liabilities up · income · assets down
Total credit£0.00
Frequently asked questions
What is the journal entry for cash withdrawn from the bank?
Example: Cash £1,900.00 / Bank £1,900.00.
How do I recognise this case?
Cash is taken from the bank for the till: an asset exchange from Bank to Cash.
What is the typical mistake?
Confusing a withdrawal for the till with drawings.