How should checks received for payment but yet to be paid into the bank be recorded in the journal?

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Originally Posted by Mary Otti

How should checks received for payment but yet to be paid into the bank be recorded in the journal?

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It is usual to create the entry when the deposit is prepared. If you have one of those one writing receipting systems then a summary of those entries will serve as the basis of the journal entry. I would write individual entries in the Cash Receipts Journal with a reference to the bank deposit