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Demand draft entry in tally

Praveen (Officer) (24 Points)

24 April 2013

Hello,

I got a Demand Draft created for Earnest Money Deposit (EMD) to participate in tenders. the Queries are,

1. Wat is the entry i need to pass for this bank transaction of created an EMD Demand Draft.

2. The tender is cancelled & DD comes back. Wat entry need to be passed for this bank transaction in Tally.

Regards,

Praveen Terani.

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11 Replies

CA Kedar Sakhardande (Proprietor) (942 Points)
Replied 24 April 2013

1) Earnest Money Deposit A/c Dr

Bank Charges A/C Dr

To Bank Account Cr

2) Bank A/c Dr

Bank Charges (if any on cancellation) A/C Dr

To Earnest Money Deposit Cr

3 Like

Divya T S (Admin) (22 Points)
Replied 29 July 2016

Dear Sir,

We have gave the DD as Earnest money deposit one of our tender purchase.How to pass this entry in tally.& Earnest Money deposit comes under which expenses.

Divya T S (Admin) (22 Points)
Replied 29 July 2016

Pls reply me anyone for the above mail

Suchita Shivaji More (Accountant) (168 Points)
Replied 29 September 2016

Under what head earnest money EMD will be shown in Tally?

sohan verma (accounted) (22 Points)
Replied 28 December 2017

Originally posted by : Praveen
	Hello, I got a Demand Draft created for Earnest Money Deposit (EMD) to participate in tenders. the Queries are, 1. Wat is the entry i need to pass for this bank transaction of created an EMD Demand Draft. 2. The tender is cancelled & DD comes back. Wat entry need to be passed for this bank transaction in Tally. Regards, Praveen Terani.

MP (employed) (53 Points)
Replied 23 January 2018

Since the earnest money will eventually be returned, It comes under 'deposits'. The entry posted by CA Kedar is correct.

Sanjay Vyas (Co-founder) (92 Points)
Replied 21 May 2018

Handling deposit and withdrawal cash are the primary work of the clerk. Along with that clerk also undertakes the receipt of cheques, drafts, dividend warrants, and pay orders. Payment clearance works like Verify cheques, issue demand drafts, etc. Maintain a daily record of balance. for further information must visit following source

https://www.tendersontime.com/publish-tender/

SWAMY (ACCOUNTS) (22 Points)
Replied 30 April 2019

Originally posted by : Praveen
	Hello, I got a Demand Draft created for Earnest Money Deposit (EMD) to participate in tenders. the Queries are, 1. Wat is the entry i need to pass for this bank transaction of created an EMD Demand Draft. 2. The tender is cancelled & DD comes back. Wat entry need to be passed for this bank transaction in Tally. Regards, Praveen Terani.

1. Wat is the entry i need to pass for this bank transaction of created an EMD Demand Draft.

what is EMD Demand draft Under

Priyanka P (2 Points)
Replied 10 July 2019

Emd is security deposit or which categories it will be come

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 15 July 2019

It will comes under Deposits as Current Assets.

Mohan (2 Points)
Replied 17 December 2023

Government can withhold the earnest money deposit and it wont give interest on it either. Keep this in mind while accounting it. Some tenders have very high EMD. Check NHAI tenders for example.