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.
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.
Required: (a) Prepare the bank account for the month ended 30.06.2018.
(b) Post the entries to other ledger accounts.