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Bcz it is receivable for us and liability for bank. When its increase in liability for bank then difinityly bank will credit cash or Cheque.
Our Receipts, whether it is Cash/Cheque when deposited in the Bank it is Debit Entry for our Cash Account/Bank Account. This is the Correspondiing Mirror entry of a credit transaction of the banker. In short Banker's credit is our Debit and vice versa......
Because it is a liability for the bank.
Deposits in Customer account are liablity for bank, and increase in deposits means increase in liability and it results in cr of customer account. I think question is bit confusing. Bank doesn't credit cash or cheque, it credits customer account.
It's CREDIT Balance for Bank
DEBIT balance for Customer
Bank is holding 2nd party's money in their Bank under guidelines of Central Bank & they're not the owner's of that money/Cash.
Because its Liablity for the Bank and liablity is always Credit according to Accounting rule
Why bank Credit cash or cheque?When we deposit in Bank Account?
In our records it will be Debited Because when we will deposit cash or cheque on the bank, its part of our assets with the bank (Asset-Debit)
but in Bank records they will record it as Debit becasue its current assets received from depositors and they will return it back when they want it, and they will record the same amount as Current Liabilities
