accounting concept mismatch

AS 558 views 1 replies

Dear All

one of my client has a problem in accounts, if an client has deposited the payment amount directly in the bank, bcoz it do its work far away from my clients but now the client has showing the day of deposited in the bank one day later, i.e cash deposited in bank on 24/04/2010 & client showing in books of a/c on 26/04/2010 on the basis that the next party has informed him on 26/04/2010 & he has given him the recepit on 26/04/2010.

but accourding to my view there should not be difference in the bank statement & the bank a/c of books on cash entry.

so advice me that how satisified my client on this ground.

Replies (1)

It can happen now...

May be coz from 1st april onwards banks has to pay interest on daily basis.

The person depositing the cash may have deposited it later or the banks computer might not be working.

To match the cash book bank balance and  bank statement  balance as on 24th april  the CASH ENTRY should be shown in reconciliation.

as NO LAW and any ACCOUNTING STANDARD in MY KNOWLEDGE says that the cash entry cannot be the reason for difference in between the two.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register