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Money transfer from one bank account to another bank it comes on debit side for both banks, is that true?

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Question added by Mohamed Umar , General Accountant , Napco National
Date Posted: 2013/07/14
Mohammad  HARB
by Mohammad HARB , treasurer , primegate for IT and telecommunications

true  

Subhranshu Ganguly
by Subhranshu Ganguly , Quality Analyst. , WIPRO

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.

Mohamed Shazwan Mahboob
by Mohamed Shazwan Mahboob , ACCOUNTANT , Bateel International LLC

This would be impossible.
Remitting bank has to debit the customer account and the receiving bank has to credit customer account once the funds are received inwards.
If it showed debit for both banks meaning that the customer funds will be deducted from his/her accounts from both banks (will show loss of funds for customer) and the bank may face problems with customer.

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

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

 

 

mohamed mansour
by mohamed mansour , chief accountant , el khatab Co for mills.

b ) false

RAMACHANDRAN SEKAR
by RAMACHANDRAN SEKAR , ACCOUNTANT , AL EWAN MEDICAL CO

Remit bank has to debit the customer account and receving bank has to credit the customer acount while the funds are received inward.if the entries are in debit side that's wrong .

manaf almas
by manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

false

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