All You Need To Know About Cash Deposit Slip

Let’s begin with the simple task of understanding how to deposit cash in a bank account. Money deposited in a bank could be in cash form or cheque form. A cash deposit slip is an acknowledgement of the cash you deposit into your bank account. The deposit slip can also be used as a cheque deposit slip, acknowledging the cheque details and amounts you deposit into your bank account. Therefore, the slip is a record of the items of cash and cheques you deposit in the bank account on any particular day. 

What does a Cash Pay Slip contain?

A cash pay or cash deposit receipt shown here is standard across all banks. 

 The bank deposit slip generally contains information on

• The account number where money will be credited.
• Name on the account, 
• If it is a savings account or your company's name if it is a business account.
• The cheque details like issuing bank and branch, the date on the cheque, amount of each cheque, payable to whom etc.
• If depositing cash, the number and denomination of notes, the total amount in each denomination etc.
• Total amount deposited in figures and words.
• An acknowledgement slip or counterfoil, with the same details and a place for the bank to affix its acknowledgement seal.

Steps to Deposit Cash In Bank:

When you visit your bank to make a bank cash deposit or cheque, you need to follow certain directions on how to fill deposit slip correctly.

1.  Ask for the deposit slip from the bank officials and fill in its details. Business accounts generally use a deposit slip book and separate slips to fill in their cash and cheque deposits. 
2. Fill in details like date, the number of the account, its type, name on the account, deposit in cash or cheques, denomination and amount of each cash value, cheque number, issuing bank, the total amount in cash and cheques and then sign the deposit slip.
3.  You can also use individual slips for cash and cheques if required. Ensure the name on the cheque is the same as the name on the account to avert wrong deposits.
4.  Also, fill in the acknowledgement slip/ counterfoil of the deposit cash slip with the details to help you track the deposit.
5.  If you are depositing cash, then you need to know how to fill cash deposit slip. Enter the denomination value and number of notes in the respective column and fill out the subtotal of each denomination value and the total amount in the columns provided.
6.  If you are depositing a cheque, enter the issuing bank and branch details, cheque number, date of issue etc. and enter the total value of the cheque in the total column.
7.  Check if all your deposits are accounted for and hand over the deposit slip with the cash and cheques pinned to the deposit slip at the bank’s designated teller. 
8.  Once the cashier enters the deposit and seals the acknowledgement of the deposit slip, remember to collect the counterfoil or acknowledgement for your records.

The Process involved with a Cash Deposit Slip:

The cash deposit form of bank is a complete deposit form containing various denominations of cheques and cash itemised and totalled on the deposit slip. This is presented to the cashier’s teller at the bank, who ensures the total amount and deposited money is the same and then processes the entry into the account.

Most banks also have a deposit box for cheque deposit slips. Usually, cheques deposited in the box go for clearing daily.  If you know how to deposit cash in bank accounts via cheques, you can stamp your acknowledgement at the counter and beat the queue by depositing cheques.

The cashier then issues the counterfoil of the deposit slip to the customer with the time and date of depositing the money. It also consists of the customer’s records that act as proof of the money deposited into the account.

Also Read: Rules and Examples of Trial Balance 

Bank restrictions on money:

1. The Income Tax Act in India U/S 269SS prohibits accepting or taking deposits and loans greater than Rs 20,000 in cash. It is required to be through a banking channel. This excludes the government, both payee and payer agriculturists with no taxable income, banks, cooperative banks, post-office savings banks, corporations under the State or Central Acts, associations and institutions notified by the Central Government.
2.  According to Section 269ST, no individual can receive cash of Rs 2 Lakhs or more, in total from a person in a single day, towards a single transaction or relating to the occasion, event or transactions from a person. U/S 271DA, the penalty for failure in compliance is equal to the received amount.
3.  If depositing cash of Rs 50,000/- and more, your Permanent Account Number or PAN card is mandatory to deposit money in bank cheque, and it should be recorded along with the KYC details of the bank records. Current accounts have a Tax Deduction Account Number or TAN number instead that must be entered on the bank’s records.

Benefits and modernisation in Cash Deposit Slips:

• The cash deposit form protects both the customer and bank by recording the deposit cash transaction. The bank maintains an electronic or written funds ledger for amounts deposited daily. It tallies this with the cheques for clearing and cash at the end of the day to ensure no deposits are unaccounted for. For the individual, the cheque/cash deposit slip is a written de facto receipt of the transaction that the bank is responsible for depositing and accounting for in the account properly. The deposit slip is useful when any discrepancy arises regarding the time, date and amount of receipt from the customer to the bank.

Modern-day trends have made bank deposit forms obsolete as banks have started providing ATM services at most branches. These machines can accept ATM deposits in cheques and cash which is electronically counted and credited to the person’s bank account using the ATM card linked to the account. 

Business and individual software for accounting solutions make use of the latest technology to support banking apps and internet banking needs smartly, making banking easy from home.

Accounting software like Tally ERP 9 helps with automatically generated slips for cash deposited into the bank account on any date. It has the same details as the deposit cash in bank slip, which is digitally and accurately captured. So you can say goodbye to manual deposit slips with the right accounting software.

Accounting software:

The bookkeepers, business owners and accounting professionals in the modern-day use accounting software solutions to electronically process account transactions, deposits, payments and account management. 

The various accounting software modules have core and add-on modules to form a perfect accounting solution for all needs.

Generally, the core modules cover-

• A record of transactions or the general ledger.
• Accounts payable and receivable for payments made and deposited into an account.
• Invoices, bills etc., issued to customers and received from suppliers.
• Sales and purchase orders record and ledgers.
• Stock, inventory books/ledgers etc., to maintain the company inventory.
• Bookkeeping module to record the collections and payments recorded daily. 

The add-on modules are-

• Tracking modules for collection of unpaid invoices, purchase requisitions, debts, approvals and debts.
• Reporting and analytical modules of financial and business data.
• Tracking employee-related business expenses.
• Processing of electronic payments.
• Salary, payroll, and tax tracking modules.

How does accounting software help a business?

Business accounting can be a complex process that is tedious and error-prone when done manually. However, nowadays, accounting software has been more advanced, so company owners can focus more efficiently on strategy and business administration. 

Tally is one end-to-end accounting software solution for business owners. With this, bank cash deposits through cash pay slips are gradually getting outdated. Some of the benefits of Tally are that-

• It automates tasks like deposits into accounts and is manual-error free. It increases efficiency and reduces the time, money and effort spent in manual accounting.
• It can generate accounting reports like the trial balance, profitability analysis, balance sheet, cash flow reports and more. Specific reports for a particular period can also be obtained through drill-down reports.
• It also maintains accurate transaction reports and vouchers while maintaining the payables, receivables etc., ledger-wise and bill-wise.
• Most accounting software like Tally is recommended for business use as they are GST compliant and instrumental in automatically generating and maintaining accounts and way-bills. 
• Accounting software makes banking, account/ bank reconciliation and access to financial data easy, understandable and always available. Cloud connectivity, web browsers and the internet have developed immensely to support such software.

What to look for in accounting software?

Here is a list of factors to look for while buying accounting software.

• Free trial and test run to understand its capabilities.

• Ease of use, essential features and an interface that is easy to use across multiple users.

• Controlled data access.
• Analytics features, reminders and financial health report generation capabilities.
• Offline tools, support systems, cloud space, data security and integration ability.
• Tech support, reasonable price, upgrades and scalability.
• Ability to generate balance sheets, financial statements, accounting reports, trial balances etc.
• Outstanding bills, etc., management features and compliance with GST.

An application like Biz Analyst can help in adhering to GST compliance by sending invoices to customers and works well offline. Moreover, your data is secure and 100% backed up, making it perfect for easing the accounting process. 

Also Read: Profit & Loss Account & Statement

Conclusion:

This article has covered how to deposit money in bank accounts, whether in cheques or cash, using a deposit form. Did you know that an accounting solution like Biz Analyst can help your business grow faster? This application is useful for Tally users who can use it to keep track of their business, analyse data, create data entries, set reminders for payments and a lot more.