Double entry primer page 47

Double Entry For Bank Payments

For each bank payment transaction, it must be pitted against the bank account. For example, if a transaction is a payment for stationery by Bank A, the entry in the sheet DATA is:

DR: Stationery $200.00
CR: Bank A $(200.00)

Similarly, sometimes, one bank payment may involve more than one account. For example:

DR: Stationery $50.00
DR: Medical $40.00
CR: Bank A $(90.00)

In this case, we need 2 rows to accommodate 2 debit entries. So, split the 1 credit amount into 2 amounts to follow the number of debit amounts, i.e.:

DR: Stationery $50.00
CR: Bank A $(50.00)
DR: Medical $40.00
CR: Bank A $(40.00)

In this example, 4 rows will be utilized.

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