Accounts
SACHIN KHETAWAT (Student) (349 Points)
16 February 2017
A FIRM SOLD GOODS TO ABC AND RECEIVE A CHEQUE FROM XYZ. CAN FIRM ACCEPT THE CHEQUE AND CREDIT THE ABC A/C.
Baljeet Singh
(CA, B.Com (H))
(954 Points)
Replied 16 February 2017
1. At the time of sale your accounting entry would be:
ABC will become your Debtor.
ABC A/c ..Dr
To Sales A/c
(Being sales made to ABC on credit)
2. At the time of receiving payment
Bank A/c ...Dr.
To ABC A/c
(Being payment received from ABC)
The beneficiary who is depositing in your bank is not relevant.
Thus, you can proceed with your arrangement.
CAclubindia
