Bank Account

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The bank account is a prime entry book as well as a ledger account. Therefore it performs a dual function. We record carried out through the business’s current account at the bank.

The following are the main transactions carried out through the bank account and the relevant double entry to record these transactions.

transactions of the bank account and relevant double-entry

Let us take an example and study how we should record transactions in the bank account.


The following transactions were taken place during the month of June 2018 in Sahan’s business.

transactions of Sahan's business


Required:         (a) Prepare the bank account for the month ended 30.06.2018.

(b) Post the entries to other ledger accounts.



Sahan's bank account

Categories: Accounting


Senuja Wethmal · September 13, 2020 at 7:08 am

This is a very useful website.

Sanduni · October 12, 2020 at 10:02 am

Thankyou teacher so much for this great work😇

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