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    angeliken's Avatar
    angeliken Posts: 16, Reputation: 1
    New Member
    		  
    #1

    Nov 12, 2008, 07:42 AM
    Maintaining balance in bank account
    What will be the debit entry for amount deducted from your bank account which represents your maintaining balance for that particular bank?
    hamzashakaa's Avatar
    hamzashakaa Posts: 161, Reputation: 8
    Junior Member
    		  
    #2

    Nov 12, 2008, 08:30 AM

    I will assume that the required balance is a compensating balance for bank loan.

    The entry will be as follows:
    Debit. Compensating balance (Other Assets)
    Credit. Bank account
    angeliken's Avatar
    angeliken Posts: 16, Reputation: 1
    New Member
    		  
    #3

    Nov 22, 2008, 09:42 PM
    Quote Originally Posted by hamzashakaa View Post
    I will assume that the required balance is a compensating balance for bank loan.

    The entry will be as follows:
    Debit. Compensating balance (Other Assets)
    Credit. Bank account
    Yes, it is a compensating balance. Thanks a lot hamzashakaa!
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