Using bank statements

by David Bazile
(Manhattan )

Hello Kathy, when working in a small business, and you have no cold statements to reference to but bank statements. How do you use the bank statements to journalize the business transactions?


Hi David!

When all you have is bank statements, you can journalize the bank deposits as revenue (debit Cash, credit Sales), and journalize the checks and automatic withdrawals as disbursements - BUT, you have to get more detail in order to make your journal entries for disbursements. Get check stubs or something to show what was paid, so you can post rent, phone, insurance, supplies, etc.

Hope that helps!


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Jun 17, 2013
here's you entry
by: Anonymous


Merchant fees are the cost of doing business with credit card companies. It is your cost of getting paid right away, so it is an Expense.

I would set up an Expense account, call it Merchant Fees, (or you can use an Account called Bank Fees if you wish) and post your entry like this:

Debit: Merchant Fees 10.00
Credit: Cash 10.00

That's all there is to it!

Have a great day, David!

Jun 12, 2013
When using bank statements
by: David Bazile

Thank you again for your input. It has really made things much easier, and also possible for me. Now, when your using the bank statements, and it shows merchant fees. How do you journalize that fee?

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