Treatment of cheque payment under cash basis

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This query is : Resolved

pawan ashani (Querist)

20 September 2011 MY FIRM FOLLOWS CASH BASIS ACCOUNTING,ON 25TH MARCH I PAID A SUM OF RS.12,00,000 TO MY CREDITOR BUT THE CHEQUE IS NOT CLEARED TILL 31T MARCH.SHOULD I BOOK EXPENSES ON 31ST MARCH OR NOT?PLEASE RPLY SOON

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

20 September 2011 On cash basis system expenditure will be booked on actual payment basis. so your cheque not cleared upto 31-3-2011 i.e actual payment not made on behalf of this grounds you need not book expenditure on 31st march'11.
OM SAI SRI SAI JAI JAI SAI

Message likes : 1 times

pawan ashani

pawan ashani (Querist)

21 September 2011 PAYMENT IS ACTUALLY MADE ON 25TH OF MARCH,I AM SURE THAT PAYMENT WILL BE REALIZED 100% IN NEAR FUTURE.CAN I APPLY CONCEPT OF "SUBSTANTIALLY PAID",DEEMED PAID.

pawan ashani

pawan ashani (Querist)

21 September 2011 PLEASE RPLY

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)

26 September 2011 well reply of Dintakurti is not genuine, u r right pawan, u can book the expense in the books and cheques which are not cleared is matter of Bank Reconciliation, nothing to do with accounting of books, you can shopw the same as expenses.

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