Treating unpaid & returned NEFT amount in journal
10 July 2020
I Arun Thomas have made an NEFT of Rs. 5000/- to Mr. Manoj. so my first accounting entry will be
Arun A/c Dr. (NEFT)
To Manoj A/c.
unfortunately its unpaid & bank returned it.
so how to treat it & what is the term used for it,,, like (Check Bounce)
09 August 2020
Your Journal Entry is not correct. At the time of making payments Manoj A/c Needs to be debited and Bank Account needs to be credited.
When NEFT got reversed, just make the opposite entry as mentioned.