08 January 2014
If a cheque is received on 31.3.2012 & deposited by business on 1.4.2012.Then it is the income of which year & in which date the entry should be passed.
it depends on your accounting system...ideally irrespective of accounting policy, accrual or cash, once the cheque is in your hand, entry has to be made...it can reflect in Bank reco as on 31 march 2013...
in accrual basis it is irrelevant when the cheque is received, you need to book income on revenue recognition policy.
08 January 2014
well revenue booking has nothing to do with when you received the cash...you need to book it when the sale is concluded...in this case, if the cheque is received on 4/4/2012, so as on 31 march, the party will reflect as a debtor in your books...
CAclubindia
