Bank day book is called as bank journal or bank book also. Bank vouchers are are prepared relating to all payment or receipts through bank then these vouchers are recorded in bank book. Bank book is divided in to two parts  i.e. receipt side and payment side. Receipt side is called as debit side of bank book and the payment side is called the credit side of bank account. Both debit and credit sides have the columns like date, particulars, ledger folio and amount. In date column the date of voucher is written, in particulars the account head other than bank account is written, ledger folio is used when the entry is posted to ledger and in amount column the amount of voucher is written.

All bank payment vouchers or cheque payment voucher are recorded in payment side and all bank receipt or cheque receipt vouchers are recorded in receipt side. Contra vouchers relating to bank are also recorded in bank book. If the cash is withdrawn from bank then the voucher is written payment side of bank book if the cash is being deposited into bank the contra voucher is recorded in receipt side of the bank book. Suppose,  a business firm is having more than two bank accounts then two column or three column bank books can be used.

Keeping in view the size of bank transactions, separate bank books can be maintained for different banks. The bank book is maintained by the cashier or accountant. The balancing of bank book is done on daily basis. Balancing means all receipt minus all payments. But like cash book it is not necessary that the balance as per bank book must tally with the balance as per banks. there may be so many reasons. Because of those reasons the balance as per bank book and balance as per bank may differ. The pages of bank book are always serially numbered.

Illustration:

Enter the following Transactions in the Bank Book (Syndicate Bank) of M/s XYZ Limited:-

Date Particulars Amount(In Rs.)
01.04.12 Opening balance of Syndicate Bank   (Debit)

35000/=

01.04.12 Cheque No. 123455 Received from M/s Gift House on account

25000/=

01.04.12 Cheque No. 045874 issued to M/s Morning Place on account

20000/=

02.04.12 Cheque No. 045875 issued to The Mahanagar Telephone Nigam Limited to pay the telephone bill for the month of March”2012)

2000/=

02.04.12 Cheque No. 045876 issue to M/s Prince Enterprises on account

10000/=

02.04.12 Cheque No. 478954 received from M/s Mascot Marketing

8000/=

02.04.12 Cash withdrawn vide cheque No. 045877

15000/=

03.04.12 Bank charges debited by Syndicate Bank for the cost of cheque books

1000/=

03.04.12 Cash deposited in to Syndicate Bank Account

7000/=

Solution

First of all, from above transactions through Syndicate Bank, following entries shall be prepared:-

Note: No voucher shall be prepared for opening balance of bank account.

Bank Payment Voucher

Date: 01.04.12

M/s Morning Place   Dr. Rs. 20000/=

To Syndicate Bank Account Rs. 20000/=

(Being cheque number 045874 issued to M/s Morning Place on account)

Bank Receipt Voucher

Date: 01.04.12

Syndicate Bank Account Dr.  Rs. 25000/=

To M/s Gift House Rs. 25000/=

(Being cheque number 123455 received from M/s Gift House on account)

 Bank Receipt Voucher

Date: 02.04.12

Syndicate Bank Account Dr. Rs. 25000/=

To M/s Mascot Marketing Rs .25000/=

(Being cheque number 478954 received from M/s Mascot Marketing on account)

 Bank Payment Voucher

Date: 02.04.12

Telephone Expenses Account Dr. Rs. 2000/=

To Syndicate Bank Account Rs. 2000/=

(Being cheque number 045875 issued to Mahanagar Telephone Nigam Limited to pay telephone bill for the month of March’2012 as per bill enclosed)

Bank payment Voucher

Date: 02.04.12

M/s Prince Enterprises Dr. Rs. 10000/=

To Syndicate Bank Rs. 10000/=

(Being cheque number 045876 issued to M/s Prince Enterprises on account)

 Contra Voucher

Date: 02.04.12

Cash Account Dr. Rs. 15000/=

To Syndicate Bank Account Rs. 15000/=

(Being cash withdrawn vide cheque number 045877)

Bank Payment Voucher

Date: 03.04.12

Bank Charges Account Dr. Rs. 1000/=

To Syndicate Bank Account Rs. 1000/=

(Being bank charges debited by bank against cost of cheque books as per bank advice enclosed)

Contra Voucher

Date: 03.04.12

Syndicate Bank Account Dr. Rs. 7000/=

To Cash Account Rs. 7000/=

(Being cash deposited in to Syndicate Bank)

After above vouchers are prepared, these will be entered in bank books as follows:-

Note

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