Deposit Slip

Deposit slip is the document that customers fill when they deposit cash into the bank account. The bank requires customer to fill out the bank account detail and other information when depositing money. It is the official document that proves that the bank has received a cash deposit and needs to credit customer’s balance.

The customer can use deposit slips to deposit cash or cheque to their account. Bank employee will spend time to check if the bank account name and account number is matched, they also check the customer signature if they deposit into their own account. After that bank employee will check the physical cash or cheque to prevent counterfeit. If it is the cheque deposit, bank needs to check if the cheque’s owner has enough balance before credit the cash to customer account.

The bank employee will check if customer is the authorized person who can deposit cash into the account. Some banks may allow the third person to deposit into the bank account, but they may require some other legal document such as an ID card or passport. It will help to prevent the act of money laundering where criminal deposit cash to account without authorization and reverse back as clean money.

Deposit Slip Elements

  • Bank Name
  • Address
  • Contact Information
  • Account Name
  • Account Number
  • Amount
  • Cash or Cheque
  • Customer Signature
  • Purpose of fund deposit
  • Bank employee signature

Journal Entry for Deposit Slip

The bank record cash receipt and credit customer balance into their balance. The journal entry should be:

Account Debit Credit
Cash 000
Customer Account 000
  • If it is the cheque deposit, the bank does not receive cash. Bank receives a valid cheque and the account has enough balance, so the bank will debit cheque balance and credit to the depositor account.
Account Debit Credit
Customer Account_Cheque Issuer 000
Customer Account_Cheque Receiver 000
  • If the customer deposits cash, they need to record the movement of cash from cash on hand/petty cash to the cash at bank.
Account Debit Credit
Cash at Bank 000
Cash on Hand 000
  • If the customer deposit cheque, they need to record the movement from cheque account to cash at bank.
Account Debit Credit
Cash at Bank 000
Cash_Cheque 000

Advantage of Deposit Slip

Legal Document It is the legal document to confirm that customer has deposited the cash into a specific account and the bank has accepted the cash. In case of depute, both parties will rely on the document as it has both signatures.
Prevent Unauthorized Deposit It is the document that bank can use to ensure that only authorized deposit is made. It is one of the procedures to ensure only proper deposits made.
Accounting Document The accountant can use the deposit slip in many different ways. It can be the reconciling item in monthly bank reconciliation. It is the document that proves that the cash has deposited into the bank account. Accountants will use it to record cash movement from cash on hand to cash at bank.

Disadvantage of Deposit Slip

Manual The process of creating a deposit still depends on manual work. It may be written by the customer or bank employee, so it will face the risk of human error.
Too many working paper In this modern-day, we are trying to reduce the unnecessary working paper that causes so many problems. It would be easy if it just a message alert or email to the owner to acknowledge that the cash is deposited.
Automatic Cash and check deposit machine is very common nowadays. It just prints the automatic receipt to confirm the deposit.