when cash is depoited into the bank account why does is show as a debit in double entry bookkeeping?
It is a debit for the person who puts the cash into the bank b/c that is an asset that has increased (cash).
Cash (Debit)
Revenue (Credit)
It is a CREDIT for the bank b/c it is an increase in the amount of cash owed to a customer (liability). So if you ever have a problem with your account and they have to refund some money to you, you will probably hear something to the effect of “We are sorry for the inconvenience Sir/Ma’am. We will credit your account for the amount of $5.26 immediately.” That credit is an increase to your checking account (which means that the bank now owes you more money if you should decide to come make a withdrawal).
Cash (Debit)
Liability Owed to Customer bka Deposits (Credit)
Bank bookkeeping is exactly backwards of regular bookkeeping. Don’t try to think of them in the same terms. It doesn’t work like that.
The Paper and Credit Scam
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