Simple journal entry

IF DHANRAJ IS DEBTOR

bank a/c   .........   dr

                  to  Dhanraj's a/c

bank is debited because money comes to bank

dhanraj is credited to cancel the current debit balance upto received amount

think again bcoz in most of the textbooks its given as cash and not bank  i think the reason would be bearer cheque bcoz it can be encashed immediately at the counter what do u think?

 

when we recieve cheque but dont deposit same day in bank... We treat cheque as a Cash in cash book.. Eg. assume that we recieved cheque amounting 500 and deposited in bank same day.. entry in book.. Bank a/c Dr 500 To Debtor a/c 500... and Suppose we recieved cheque but didnt deposit same day in bank.. Entry in book.. Cash a/c Dr. 500 To Debtor a/c 500.. and suppose after 4 day or any other day we deposited in bank.. Entry in book.. Bank a/c Dr. 500 To Cash a/c 500. (contra ) correct me if m wrong..

If you took the cheque directly to bank and withdrew cash then

Cash Dr   

To  Dhanraj (if he is a Debtor)

 

If cheque deposited into bank (with or without crossing) into bank then

Bank A/C Dr   

To  Dhanraj (if he is a Debtor)

Authors of various books can take either of them. Both are correct. At professonal exam level, you may put a note clarifying above position.

 

 

 

Practically it depends where you have deposited this amount :

For eg : If you got cash from the Cheque issuing bank , & u have not deposited same into the bank then it will be ,
Cash A/c..................Dr
   To Debtor A/c
Becuse if you added to your petty cash book i.e. your cash got increased by this much figure.

Now Case 2 :

You got the cheque encashed , & deposited the entire amount to Bank :

Then :

Cash.............Dr
  To Debtor

ANS

Bank..........Dr
   To Cash

OR

Bank.......Dr
   to Debtors

Varsh*t Shah

Originally posted by : Varsh*t Shah
	Practically it depends where you have deposited this amount : For eg : If you got cash from the Cheque issuing bank , & u have not deposited same into the bank then it will be , Cash A/c..................Dr    To Debtor A/c Becuse if you added to your petty cash book i.e. your cash got increased by this much figure. Now Case 2 : You got the cheque encashed , & deposited the entire amount to Bank : Then : Cash.............Dr   To Debtor ANS Bank..........Dr    To Cash OR Bank.......Dr    to Debtors Varsh*t Shah

yes i agree with shah

 

A bearer cheque is often treated to be equivalent to cash. This because the bank will give you the cash and not directly deposit it in your account. Therefore the entry depends totally on your assumption of what you do with the cash. If you deposit it in your account then debit Bank A/C, otherwise debit Cash A/C. Therefore both are correct. If the question comes in exam, you may write your assumption separately.

thank you all for participating in this discussion

Agree with mahrndra jangid

Agree with mahendra jangid

On receipt of cheque  , the entry will be

Cash A/c      Dr

      To Debtors A/c

on deposit of cheque to bank, it will be

Bank A/c     Dr

     To cash A/c

Coz if we have cheque in hand it is treated as Cash in hand only when we deposit cheque in bank then only amt comes in bank a/c

if you receive cheque from debtor. journal entry id

          CHEQUE IN HAND A/C DR..

                      TO DEBTORS A/c

deposit into the bank.  journal entry is

      CASH/BANK  A/C DR.

            TO CHEQUE IN HAND A/C

 

if you receive cheque from debtor. journal entry is          

CHEQUE IN HAND A/C DR..                      

            TO DEBTORS A/c

deposit into the bank.  journal entry is      

CASH/BANK  A/C DR.            

           TO CHEQUE IN HAND A/C