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    jennytayl's Avatar
    jennytayl Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 17, 2008, 08:43 AM
    New bank account entry
    What is the entry to post when setting up a new bank account for the beginning balance?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Dec 18, 2008, 07:45 AM

    There is no journal entry required when establishing your account, only when you deposit or withdraw funds.

    The entry to record a deposit is:
    Debit Cash for the amount
    Credit Accounts Receivable for the amount if a customer is making a payment, or Sales revenues if Cash received on a sale, or appropriate Account.

    The entry to record a withdrawal is:
    Debit the appropriate Expense or Payable account for the amount
    Credit Cash for the amount.
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