Payments · Level: Basics
Journal entry: Paying cash into the bank
Money only moves from the till to the bank: an exchange between two assets, no income or expense.
Worked example
We pay £6,000.00 from the till into the bank account.
Correct journal entry
Bank £6,000.00 / Cash £6,000.00
Debit
Bank£6,000.00
Credit
Cash£6,000.00
Why?
- Bank: asset increases → debit
- Cash: asset decreases → credit
Typical mistake
Debiting Cash: the till goes down, the bank goes up.
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
We pay £4,700.00 from the till into the bank account.
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 paying cash into the bank?
Example: Bank £6,000.00 / Cash £6,000.00.
How do I recognise this case?
Money only moves from the till to the bank: an exchange between two assets, no income or expense.
What is the typical mistake?
Debiting Cash: the till goes down, the bank goes up.