Ranjan, an employee of Jumbo Electronics, deposited in the bank Rs. 40,000 as the previous day's sale held overnight in the firm's safe. He has recorded the transaction in the Cash Book as follows: In the bank column on Payments side: and in the cash column on Receipts side. Has he passed the entry correctly?

Ranjan, an employee of Jumbo Electronics, deposited in the bank Rs. 40

1.	Ranjan, an employee of Jumbo Electronics, deposited in the bank Rs. 40,000 as the previous day's sale held overnight in the firm's safe. He has recorded the transaction in the Cash Book as follows: In the bank column on Payments side: and in the cash column on Receipts side. Has he passed the entry correctly?
Answer» Solution :The ENTRY recorded inn the books of ACCOUNT is not CORRECT. A DEPOSIT into the bank is recorded on the Receipts side of the Cash Book in the bank column and cash deposited is PAYMENT, it is recorded on the Payments side of the Cash Book in the cash column.

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