Hi
Please help me,I have issued some cheques on 29March2014 to parties from these 2 cheques are cleared but still 11 cheques remained uncleared so how we show this in books of accounts .
Plz help its urgent
Thanks in advance
Kapil Dhiman (Accountant) (304 Points)
24 November 2014Hi
Please help me,I have issued some cheques on 29March2014 to parties from these 2 cheques are cleared but still 11 cheques remained uncleared so how we show this in books of accounts .
Plz help its urgent
Thanks in advance
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 24 November 2014
Dear kapil,
the cheques you have issued have been expired now, since the validity for any cheque is only 3 months.
So now make a back date entry in your books in july for reversal.
Bank_Dr
To party
Kapil Dhiman
(Accountant)
(304 Points)
Replied 24 November 2014
Hi Saloni,
My means is that I have issued cheque's in march from these 2 cheques are cleared in march and remaining cleared in april so that entry should be done in preperartion of Final accounts till march 2014
Parmod Kaushik
(ASST. ACCOUNT MANAGER)
(38 Points)
Replied 25 November 2014
Kapil....
At first create the head "Cheque issued but not cleared" and transfer these cheques under this head. This head will be shown in the balance sheet under current liabilities with the head of "Cheque issued but not cleared".
And next year as per clearing the cheques reverse entry will be posted in the books of account and at last cheque issued but not cleared head will become nil.
Kapil Dhiman
(Accountant)
(304 Points)
Replied 25 November 2014
Hi Parmod,
As you know we have paid cheques before 31 march so how can this become my liabilities as i have paid this earlier.
Parmod Kaushik
(ASST. ACCOUNT MANAGER)
(38 Points)
Replied 25 November 2014
You are right kapil, but payment not deduct from your bank account on 31st March. So it still your liability as on 31st March.
So, end of the month pass the journal entry with effect bank and "cheque issued but not cleared" head to reconsile your bank account with bank statement also.
@VaibhavJ
(Believe!! Live your dreams!)
(33516 Points)
Replied 28 November 2014
Hi
Since as on preparation of Final A/c chqs are already cleared, no effect will come in financials..
Only you need to show them in BRS as chqs issued but not cleared...
Thanks
Kapil Dhiman
(Accountant)
(304 Points)
Replied 28 November 2014
Thanks
You means to say We can show these cheques in Bank as cheuqe not cleared and in April We can show this as opening balance in Bank a/c
@VaibhavJ
(Believe!! Live your dreams!)
(33516 Points)
Replied 28 November 2014
No. you should not show this amt as your bank balance!!
U have already issued chq so you need to minus it from your bank balance!!
Thanks
Parmod Kaushik
(ASST. ACCOUNT MANAGER)
(38 Points)
Replied 01 December 2014
Kapil pass these entries in your boos of account:
Example:
ABC Limited Dr. XXXX
To XYZ BanK Ltd. XXXX
THEN
XYZ Bank Ltd. Dr. XXXX
To Cheque issued but not cleared XXXX
(in the end your bank book balace will tally with Bank statement. In next year when ch)
Parmod Kaushik
(ASST. ACCOUNT MANAGER)
(38 Points)
Replied 01 December 2014
Kapil pass these entries in your boos of account:
Example:
ABC Limited Dr. XXXX
To XYZ BanK Ltd. XXXX
THEN
XYZ Bank Ltd. Dr. XXXX
To Cheque issued but not cleared XXXX
(in the end your bank book balace will tally with Bank statement. In next year pass the following entry)
Cheque issued but not cleared Dr. XXXX
To XYZ BanK Ltd. XXXX
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