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Journal Entry (1) Bank Account To Sales Account (ii) Commission Account To Bank Account Dr. [Daily total of credit card sales] Dr. [Commission on total
Journal Entry (1) Bank Account To Sales Account (ii) Commission Account To Bank Account Dr. [Daily total of credit card sales] Dr. [Commission on total monthly credit card sales.) 98 Debit Card A Debit Card is similar in appearance to a Credit Card and which is offered in a similar way in payment for goods and services. The main difference is that in the case of a debit card such payments are then debited to the holder's bank account in exactly the same way as a cheque. The advantages of a debit card are : First, it may be used to make larger payments than might by acceptable by cheque (provided there are sufficient funds in the bank account of the cardholder). Secondly, it can be used to operate automated teller machines (ATM) with a special personal identification number. Illustration 2 Record the following transactions in a suitable cash book of Mr P. Basu for the month of January, 2017 and show the closing balances of cash and bank (all figures in). 1 He had cash in hand 50,000 5 Deposited the cheque received from Mr Sunil Ranjan 2 Opened a Bank Account 30,000 5 Withdrawn from Bank for personal use 3,000 2 Received from Mr T. Bose 4,000 5 Paid Eeectricity Bill 3 Paid to Mr N. Gopal in cheque 5005 Pald rates and taxes 3 Purchase made in cash 1,000 5 Purchases made in cash 7,000 250 5 Cash sales 12,000 3 Withdrawn from Bank 3,000 5 Sold to Sree Nagarjun 5,000 4 Cash sales 5,000 5 Purchased from Mr Nemai Bose 2,000 4 Received a cheque from Sunil Ranjan 10,000 7 Received a cheque from Sree Nagarjun and sent to Bank 3,000 4 Paid wages 200 7 Pald railway freight 4 Purchased furniture in cash and paid by cheque 4,000 7 Purchased stamps and stationery 25 4 Cash purchases 3,000 7 Deposited in Bank Account 300 52 100 3 Paid rent 250
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