Asst Manager(Internal audit)
1679 Points
Joined May 2011
Hi gaurav,
entry in books will be
Bank A/c.... Dr
To party account
and your bank balance increases, however if you see the bank pass book or statement it will not tally that difference will be solved in bank reconciliation, that kind of differences will be there
some people maintains seperate account for this kind of transactions like
cheques pending for deposit A/c.... Dr
To party account
once deposited
bank A/c....Dr
to cheques pending for deposit A/c
this is the difference between two
2) in case of balance sheet it will be shown in bank ( as a current asset) however if the cheque is not deposited until 3 months then it becomes stale and the entry originally passed will be reversed.
3) even for company or individual the accounting is same