Brs

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Kaushik Vinod (Querist)
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21 May 2013 Dear Experts,

When we make BRS at the end of year and found some entries while making the BRS.
Now suppose We have detected a Cheque which was issued by us but was dishonored by Bank due sign mismatch.
We have debited the party and credited the Bank , So my question is whether we have to reverse the entry as on 31-03 ? If another treatment then please suggest.

CA Bikram Singh

CA Bikram Singh (Expert)
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21 May 2013 Dear Kaushik,

Principally there is no mistake/ error in your accounting entry, so no need to reverse the entry. just cancell the old cheque and issue a new one.

Hope you are clear now...

CA Bikram Singh

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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21 May 2013 The original entry has been passed on a particular date and if you just cancel the old cheque and issue a new cheque then i dont think the new cheque will be issued for the same date on which original cheque was given.
Best option is to pass a reconciliation entry at the year end in BRS and as and when a new cheque will be issued then at that moment pass a reversal entry along with a new entry.

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