what is the entry of dishonour of cheque?? please explain the entry..
thx in advance
customer 's a/c..........dr
to bank a/c.
(being cheque recieved from customer / debtor dishonoured)
THE REASON FOR THIS ENTRY IS:-
when u recieve a cheque frm a debtor ( say ram) and it is not deposited on the same day in bank it is treated as cash. So, entry will be:-
Cash a/c ...............dr.
to ram
and when this cheque is deposited afterwards, it is obvious that our bank balance will increase and cash which was debited above will decrease. so, entry is:-
Bank .............dr
to cash a/c
but it is dishonoured so, both entries will be just opp, i.e, dr. becums cr. and cr. becomes dr.
after that cash will have no effect as will just cancel out and the left and final entry of ur query is:-
Ram...................dr
to bank a/c.
Abheer
(student)
(217 Points)
Replied 01 July 2012
what is the nature of accounts for provision for depreciation and provision for doubtful debts??
are they credited or debited? explain....
CMA KNVV Sri Vidya - Sri Kanth
(C.A.Final (New) ICWAI FINAL (New))
(11269 Points)
Replied 01 July 2012
Provisions are expected losses in future ... so in order to protect the company from unexpected losses provisions are created
Debit - all Expenses & Losses
Credit - All Incomes & Gains
Nature of Accounts - Nominal Account....
Provisions always shows a credit balance .... and they are credited
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 02 July 2012
I agree with sri vidya - Sri Kanth.
Provisions always shows credit balance
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 02 July 2012
provisions are shows in left side of balance sheet ...
there is also head like ...
Reserves and Provision ....
Vikas
(job)
(47 Points)
Replied 02 July 2012
all assets & expenses have always a debit balance and all liabilities & incomes have a credit balance
Gourav Dutta
(CA Final)
(39 Points)
Replied 02 July 2012
When Cheque recived at a Time Entry
Bank A/c...........................Dr
Customer A/c
When Cheque Cancelled
At a time Entry
customer A/c..................Dr
Bank chg........................Dr
to Bank A/c
And U Also received Against Cheque is Cash or bank chg
Cash A/c............................dr
to Customer A/c
to bank Chg A/c
Abheer
(student)
(217 Points)
Replied 05 July 2012
like depreciation is said to be expense...then what is provision for depreciation called???
indraneel
(student)
(39 Points)
Replied 05 July 2012
depreciation is a non cash expenditure and provision for depreciation is a fund which will be set off , no matter if there are profits or losses to the entity for purchase of new asset. As you can understand if the asset is gets destroid today you cannot bear such huge expense suddenly so the entity maintains a fund named provision for depreciation
Abheer
(student)
(217 Points)
Replied 05 July 2012
so ultimately its an expense only.. and is a nominal account...right?
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