Multiple choice

A sum of Rs. 25,000 is deposited in State Bank of India. The correct entry is

  1. State Bank of India's A/c Dr 25,000
    To Cash A/c 25,000
  2. Cash A/c Dr 25,000
    To State Bank of India's A/c 25,000
  3. Vijaya Bank's A/c Dr 25,000
    To Cash A/c 25,000

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Since cash has gone out, we have to credit it. State Bank of India is debited because we have deposited cash in it, so it has become our debtor.

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