Accounting problem!!

customer 's a/c..........dr

to bank a/c.

(being cheque recieved from customer / debtor dishonoured)

THE REASON FOR THIS ENTRY IS:-

when u recieve a cheque frm a debtor ( say ram) and it is not deposited on the same day in bank it is treated as cash. So, entry will be:-

Cash a/c ...............dr.

to ram

and when this cheque is deposited afterwards, it is obvious that our bank balance will increase and cash which was debited above will decrease. so, entry is:-

Bank .............dr

to cash a/c

but it is dishonoured so, both entries will be just opp, i.e, dr. becums cr. and cr. becomes dr.

after that cash will have no effect as will just cancel out and the left and final entry of ur query is:-

Ram...................dr

to bank a/c.

thanku so much :-)

one more please

what is the nature of accounts for provision for depreciation and provision for doubtful debts??

are they credited or debited? explain....

Provisions are expected losses in future ... so in order to protect the company from unexpected losses provisions are created 

Debit - all Expenses & Losses 

Credit - All Incomes & Gains 

Nature of Accounts - Nominal Account.... 

Provisions always shows a credit balance .... and they are credited 

I agree with sri vidya - Sri Kanth.

Provisions always shows credit balance

provisions are shows in left side of balance sheet ...

 there is also head like ...

Reserves and Provision ....

all assets & expenses have always a debit balance and all liabilities & incomes have a credit balance

When Cheque recived at a Time Entry

Bank A/c...........................Dr

Customer A/c

When Cheque Cancelled

At a time Entry

customer A/c..................Dr

Bank chg........................Dr

  to Bank A/c

And U Also received Against Cheque is Cash or bank chg

Cash A/c............................dr

 to Customer A/c

 to bank Chg A/c

like depreciation is said to be expense...then what is provision for depreciation called???

depreciation  is a non cash expenditure and provision for depreciation is a fund which will be set off , no matter if there are profits or losses to the entity for purchase of new asset. As you can understand if the asset is gets destroid today you cannot bear such huge expense suddenly so the entity maintains a fund named provision for depreciation

so ultimately its an expense only.. and is a nominal account...right?