What would be the accounting journal entry for check received for sale $2000. Will we debit cash or bank ?

Question

i think it could be cash but m not sure..since check is not entirely in cash form. So please help!!

Answer 1

It depends on your chart of accounts. If your company has a Bank a/c, then you should debit that one. Cash probably means petty cash when you have a separate cash a/c in your chart of a/cs. But you should note that in accounting, most people think of cheques as cash. A cash flow statement is not just pure cash transactions. Most balance sheets have this under "Cash & bank balances" or "Cash & cash equivalents"

Answer 2

Debit cash $2,000. Credit Sales or Revenue $2,000