- Bank deposits are when the payment received from the customer is deposited into a bank account. This will increase the bank’s funds and decrease the undeposited fund accounts.
- Writing checks occurs when businesses issue checks as payment for items they purchase or any type of payables. The GL impact will show a decrease in the amount of money in the bank.
For example, a business purchased office supplies.
Another example is when a business pays an outstanding loan using a check. The entry would be:
