Journal Entries | Banking Transactions (Part2) (original) (raw)

Last Updated : 16 Apr, 2026

**1. Payment is received through cheque, and a discount is allowed.

**A. When a cheque is received from a person, and a discount is allowed to him (Cheque is deposited into the bank on the same day):

**Journal Entry:

**Example: Received a cheque of ₹19,400 from Vishal and deposited it in the bank, and offered him a discount of ₹600.

**Solution:

**B. If the above cheque gets dishonoured:

**Journal Entry:

**Example: Vishal's cheque which was sent to the bank for collection, and got dishonoured.

**Solution:

**2. When a payment is made through cheque:

**Journal Entry:

**Example: Paid to Akanksha through cheque ₹8,000.

**Solution:

**3. When expenses are paid through cheque:

**Journal Entry:

**Example: Rent paid through cheque ₹800.

**Solution:

**4. When interest is charged by the bank:

**Journal Entry:

**Example: Interest charged by bank ₹500.

**Solution:

**5. When interest is allowed by the bank:

**Journal Entry:

**Example: Interest allowed by bank ₹1,000.

**Solution:

**6. When a bank charges any amount for the services rendered:

**Journal Entry:

**Example: Bank charges ₹50.

**Solution:

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