Cash sales

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This query is : Resolved

Soumendra Jaiswal (Querist)

30 September 2016 if we made a cash sale and later party paid it by cheque then how we can make a entry for that as if we credit party then it will show credit balance of party....

Sandeep Dharar

Sandeep Dharar (Expert)

30 September 2016 Firstly in cash sale there is immediate realisation of funds, to there is no scene of payment by debtors for the same transaction again. If the Debtor wants to show the payment in cheque then u must refund the cash back to the creditors to avoid double payment. In that case u must debit the debtors and credit the cash, by that way ur debtors will stand back again by the same amount, and at the time of payment by cheque u must pass a simple receipt entry in bank.

Soumendra Jaiswal

Soumendra Jaiswal (Querist)

30 September 2016 will it be appropriate to show this amount as cash deposited in bank....

Sandeep Dharar

Sandeep Dharar (Expert)

30 September 2016 No, in sale u can't show cash deposit in bank, its internal matter of organisation, so Debtor can't get involve in it.

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