Treatment of uncleared cheques

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Aftaab (Querist)
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24 August 2014 i am an accountant.

1) in my company there is printer repair expense in march 2013. cheque paid on 15th march 2013. but it is cleared in next accounting year i.e april 2014. now to close the accounts, what entries i have to pass as still the amount is uncleared in bank.

2) In the month of May 2014 I issued a cheque towards rent but it cleared in June 2014. Now during reconciliation i found the same. do i need to reverse the entry in tally to match balance as per bank and cash book? or just preparing manual BRS statement is ok

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 August 2014 you need to debit the bank account in the books. The uncleared check will reflect in the bank reconciliation.

you shall always consider bank balance as per your books and show the difference between bank statement and books in the BRS

Aftaab

Aftaab (Querist)
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24 August 2014 Thanks for reply, but if I debit bank account, what shall i mention in credit? shall i just reverse the entry? or shall i need to create a new account to credit?

I know how to prepare a BRS statement. but confused in adjusting at the year end. Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 August 2014 you credit the customer who gave you the cheque...

Rupesh Jain

Rupesh Jain (Expert)
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26 August 2014 when you make the BRS then you can show this o/s cheque.

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