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
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
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.
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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