Brs

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2014 PLS Tell me

If I make payment for my purchased to my creditors by cheque on 29.03.2014 of ₹10,000/- and he got the cheque on the same day but didn't put the cheque on the same day in the bank, but put the cheque in the bank on 05.04.2014. Then In the closing B/s of F.Y. 2013-2014 whether my Bank A/c will be showing bank bal. less than 10000 or not.

Pls answer this query by how creditor would be dealing with this cheque in his B/S.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

18 April 2014 you should have credited your bank A/c (in books) by Rs 10000 on 29 March. The cheque will reflect as "cheque issued but not presented" in the Bank reconciliation.

How creditor deals with it will be reverse of how you do.

He will debit his Bank A/c (in books) and then reflect the same as "cheque received but not credited in the Bank" in BRS.

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2014 But sir
how can creditor debit the received cheque because he didn't put the cheque in the bank and he has no proof that he will be receiving that payment or whether cheque will be cleared or not.