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

    Aug 30, 2008, 03:55 AM
    How are deposited checks handled in the general ledger .debited or credited?
    Dear Sir,

    I have a question regarding the general recording of checks in the general ledger. What are some rules of thumb when dealing with deposited checks?. Are they debited or credited. I'm sorry the question is rather v ague but if you can answer by way of some examples I'd appreciate it.

    Regards,

    David
    jean3255's Avatar
    jean3255 Posts: 9, Reputation: 1
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    #2

    Sep 10, 2008, 08:32 PM
    Deposited checks increase your cash, which would be a debit. If it is for acct. rec. the other side of the entry would be a credit to acc. rec.
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
    Junior Member
    		  
    #3

    Sep 12, 2008, 09:14 AM
    Cash could also be received from a loan, i.e. Dr. Cash, Cr. Note payable.

    Also, another possibility is a capital infusion (the owner's or shareholders of the company provide for capital)

    This would increase both your cash balance and your owner's equity balance, Dr. Cash, Cr. Capital

    But regardless, if you are receiving cash, you debit it.
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