Accounting treatment for unknown cheque received

Hi Experts,

If i receive cheque from unknow parties how to account the same in my books.

Requesting your suggestion.

Regards,

Prabhu

Replies (4)

Dear Prabhu,

How did this happen? the assessee must have any info. whether it is his revenue/loan taken/loan disbursed etc.... and if no clue regarding that, then create a suspense A/c, but the problem would be in regards to determination of nature of receipt i.e. revenue/loan etc...

Dear Prabhu,

With regards to your querry, following remedies are available:

  1. If the cheque received is against some Sale / Service provided by your organisation, and you are not sure which Debtor to be linked with the payment received.

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

                            To Sundry - Suspense A/c

            As you get the information regarding the un-linked credit, you can adjust the Sundry -   Suspense             A/c with the specific Debtor A/c

 

        2. In case of No Information, you have no other option then to pass the following entry

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

            To Suspense A/c

            Suspense A/c will be adjusted accordingly on receipt of proper information. 

 

 

 

Check the ledgers of sundry balance written off of the previous years. It could be a payment from a client whose balance was writen off in the previous years. 

Dear Prabhu

You can keep the amount in Suspence Account for whole of the year. 

Only when the year is going to end, you have to decide whether you want to adjust the same as Income in that  year or would like to carry forward it to next year by transferring the same in Creditors/Advance Received from Customers so that the same can be adjusted in later years.

thanks

Harish

 

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