Treating unpaid & returned NEFT amount in journal

This query is : Resolved

Arun Thomas (Querist)
Follow

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)

Please advice

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

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.