Non clear of cheque
This query is : Resolved
20 May 2008
A cheque was issued on 01.12.08 for Rs. 10000/- for Travelling exps.Till 31.05.08, same cheque does not cleared from Bank.Now following entry passed in Books on 31.05.08.
Bank A/c Dr 10000
To Travelling Exps A/c 10000
But assume, during the year other Travelling exps made by the company will be only 4000/-. Now there is a credit balance of Rs. 6000/-
What will be the treatment?
Should this entry haveto pass on 31.03.08 because the expenses relate to last year?
What about the FBT paid in last year?
Bank A/c Dr 10000
To Travelling Exps A/c 10000
But assume, during the year other Travelling exps made by the company will be only 4000/-. Now there is a credit balance of Rs. 6000/-
What will be the treatment?
Should this entry haveto pass on 31.03.08 because the expenses relate to last year?
What about the FBT paid in last year?
20 May 2008
1.WHILE THE DR. WAS GIVEN TO TRAVELLING EXP. ON 01-12-07( IT COULD NOT BE 01-12-08 AS STATED IN THE QUERY ), THE CREDIT COULD HAVE BEEN GIVEN TO THE PERSON TRAVELLED(OR WHO SUBMITTED THE TRAVEL CLAIM ).
2.THEN DR.PERSON AND CR. BANK FOR PAYMENT MADE ON 01-12-07
3. ACCORDINGLY, ON 01-06-08(CHEQUE BECOMES STALE AFTER 6 MONTHS) SINCE THE CQ. WAS NOT ENCASHED,DR. BANK. CR. PERSON
TRAVEL EXP. SINCE WERE ALREADY AND ACTUALLY INCURRED ,DR. TO TRAVEL DOES NOT GET AFFECTED IN JUNE 08.
WHAT YOU CAN DO NOW ( I PRESUME AUDIT AND FINALISATION OF ACCOUNTS IS NOT COMPLETED YET)PASS VOUCHERS AND MAKE ENTRIES AS PER ITEM 1,2,3 ABOVE.
I HOPE SOFT WARE ALLOWS CHANGES AND CANCEL ORIGINAL ENTRIES IN SYSTEM AND PASS FRESH ENTRIES.
THIS WAY, FBT, AND ANY ACCOUNTING PROBLEMS DO NOT ARISE.
R.V.RAO
2.THEN DR.PERSON AND CR. BANK FOR PAYMENT MADE ON 01-12-07
3. ACCORDINGLY, ON 01-06-08(CHEQUE BECOMES STALE AFTER 6 MONTHS) SINCE THE CQ. WAS NOT ENCASHED,DR. BANK. CR. PERSON
TRAVEL EXP. SINCE WERE ALREADY AND ACTUALLY INCURRED ,DR. TO TRAVEL DOES NOT GET AFFECTED IN JUNE 08.
WHAT YOU CAN DO NOW ( I PRESUME AUDIT AND FINALISATION OF ACCOUNTS IS NOT COMPLETED YET)PASS VOUCHERS AND MAKE ENTRIES AS PER ITEM 1,2,3 ABOVE.
I HOPE SOFT WARE ALLOWS CHANGES AND CANCEL ORIGINAL ENTRIES IN SYSTEM AND PASS FRESH ENTRIES.
THIS WAY, FBT, AND ANY ACCOUNTING PROBLEMS DO NOT ARISE.
R.V.RAO
21 May 2008
Sir,
What happen to the credit balnce of party in this year if no new/revised cheque to be issued further?
Are you sure that no reversal entry have to made in 31/03/08?
What happen to the credit balnce of party in this year if no new/revised cheque to be issued further?
Are you sure that no reversal entry have to made in 31/03/08?
21 May 2008
If you pass the journal entry in last year accounts itself, the question will not arise
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- RELATED TO TRIBUNAL APPEAL
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- LIC maturity claim whether taxable
- Sec 44ada applicable only or both
- Compulsory aqisation of Agriculture & Non Agriculture land are taxable or not ?
- TDS AND ITR ISSUE
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
