Cash book

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Periya karuppan (Querist)
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20 February 2017 A transaction 'He Pays by Cheque for Cash Purchase'.How can i treat the transaction whether it is a Bank transaction or a CashOne?Kindly help me to solve it

Sandeep Dharar

Sandeep Dharar (Expert)
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20 February 2017 If bearer cheque is issued, still bank is involved in the transaction. better to go for details regarding supporting to the transaction.

Periya karuppan

Periya karuppan (Querist)
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20 February 2017 But the given transaction is Just He Pays by Cheque for Cash Purchase alone.

Sandeep Dharar

Sandeep Dharar (Expert)
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20 February 2017 Periya u must understand the difference between credit purchase and cash purchase. Credit means there is a period (payment terms) after which u r going to pay them for the items or services purchased. It may b a case of immediate payment, but the management of urs is paying them by cheque instead of cash. So u may first post a journal for purchases and then go for payment entry. And since there is involvement of bank so u can't treat this as a cash transaction.

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Periya karuppan

Periya karuppan (Querist)
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20 February 2017 Thanks for the kind Reply

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Sandeep Dharar

Sandeep Dharar (Expert)
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21 February 2017 U r welcome dear. U can show ur appreciation by hitting the like button if u like my reply.