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The person who is sending the money his account is going to be debited and the amount deducted from his account. The amount would be credited to the recipents account. In the proces if the recipient has account in a different bank the banks own account getscredited with the fund and then it gets credited to the recepiets account. If the amount is very large the bank can also earn some interest by delaying the debit by1 or2 days.This happens in India for banks in the region of31st march when all branches are in competion to show a high closing balance.
False; under the double accouting system
Bank A's books
Debit Customer A/c
Credit Bank B a/c
Bank B's Book
Debit Bank A a/c
Credit Client a/c