Bookkeeping › Bank Reconciliation

What is a credit transfer (bank giro) received?

Beginner

Answer

A credit transfer is money paid directly into the business's bank account by a customer or third party (e.g., BACS/bank transfer). It may appear on the statement before being recorded, so the cash book is updated (debit bank, credit the customer/receivable or income) during reconciliation.
Customer transfer 400: Dr Bank 400; Cr Debtor 400.
Real-world example A customer's bank transfer shows on the statement and is then posted to clear their sales ledger account.

Common follow-ups: Which side of the cash book records it? | Why might it appear first on the statement?