So what should I record on my Bank Deposits? Normally deposits should represent your sales for your business. However sometimes when you have a new business you may need to deposit money that is from you personally or money that you borrowed from another source. If you are recording a deposit for money that is not from sales, then you should record it either as an equity contribution if it is coming from your pocket, or as a loan. Your debit would be to the cash account, and your credit entry would be to either the equity account, if the money is from you, or to a loan, example, Wells Fargo Business Loan. If the deposit is for sales from your business, then record it to the sales account. Next, what about if I am collecting Sales Tax?
Provided by Alamo Bookkeeping Associates