If cash has been deposited at bank by a customer named "X" directly, can we take the entry as:
Entry 1
Bank a/c ...... Dr
To, X a/c
my colleague insists up on the above entry.
but the obvious entry should be :
Entry 2
Cash a/c ..... Dr
To, X A/c
Bank a/c ...... Dr
To. Cash a/c
which is the correct entry as per accounting principal.
Is the first entry correct, if not why?
Help me in this context.