Accounts

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A FIRM SOLD GOODS TO ABC AND RECEIVE A CHEQUE FROM XYZ. CAN FIRM ACCEPT THE CHEQUE AND CREDIT THE ABC A/C.
Replies (1)

1. At the time of sale your accounting entry would be:

ABC will become your Debtor.

ABC A/c ..Dr

 To Sales A/c

(Being sales made to ABC on credit)

 

2. At the time of receiving payment

Bank A/c ...Dr.

To ABC A/c

(Being payment received from ABC)

 

The beneficiary who is depositing in your bank is not relevant.

Thus, you can proceed with your arrangement.

 


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