Brs

Save Share

This query is : Resolved

Kaushik Vinod (Querist)

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)

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)

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now