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riddhi (Querist)

16 March 2015 we had issued a rent chq which the landlord forgot to deposit so now it reflecting in the opening balance. I want to reverse the entry but i cant reverse the bank entry as the chq was not deposited so it will not reflect in bank and also it is not reflecting in reco. earlier entry passed was party
to bank
and now i reversed it as
party
to rent expense
is it correct? it has opening cr balance.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

16 March 2015 if you wil do this entry, then party wil b debited twice na...(As per your earlier entry)

i think u can recall the cheque now... and can pass a reverse entry like

Bank dr.
To Party
(Cancel the cheque)

but for this first do call the cheque back and cancel that...

Also i didnt understand one thing, if the landlord hadnt deposited it till now, cant he do it now.. or the cheque date has passed...

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

16 March 2015 also if u didnt clear from my above answer.. do explain the situation clearly... with all entries u passed in past related to this..!!

riddhi

riddhi (Querist)

16 March 2015 the chq cannot be deposited now as the date has passed and it was of 2011. we make the provision by passing a jounal entry

rent dr
to party
and then pass a payment entry

party
to bank

but in this case the payment entry dint come and only the journal entry is there so as on 1/4/2014 i passed this entry

party
to rent
as party was showing a credit balance and now it has become nil after this entry

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

16 March 2015 u had already decreased the bank balance.. then on year 2012,2013,2014 how you make bank balance tally...

is it there in your reconcillation...

still by crediting rent u r doing wrong na...

why the rent wil b credited, it was an expense for the year 2011..

u must have standing balance of only party now... u can credit the bank and dr the party... so that party balance wil stand as liability...

riddhi

riddhi (Querist)

17 March 2015 that year they must not have added it in reco and the chq was not deposited so bank will tally if the entries were not as per chq book but now what should i do? What you said should be the actual entry but if i cr the bank the bank balance wont tally with that much amount.

if the provision for march is
rent
to tds
to rent payable

can i reverse the provision as on 1/4/2014
rent payable
to rent

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