Cash entries passed in Journals

Cash entries shuold be entered through purchase,sale,payment or receipt.

but if you entered through journal there is not any problem........

the only difference is that while in case of entering through specific route(payment or reciept)

you will get a prompt message that there must me bank or cash.

Invoking the JV Facility for cash is dangerous and it helps in passing adjustment entry. There is chance of loseing control on cash and this point will be hihghlighted by auditors.

Rgds./Nitesh

Why you are using JV mode for cash entries. As per Accounting concept Journal vouchers are not containing Chq or Cash. So if you are using Cash in JV mode the voucher are either Payment or Receipt or Contra, Yes it will definitely  iffect to your voucher series and also creat doubt to your auditor.

>> Rajesh

rajesh is right

Mr. Rakesh is right

 ya rajesh is correct

In Accounting Practice, there were two types of transactions - one is Cash and the other is Non-cash.  All Cash transactions are recorded through Cash Book and Bank Book. Here cash transactions include bank transactions also.  All non cash transactions recorded through Journal. 

In Accounting Practice, there were two types of transactions - one is Cash and the other is Non-cash.  All Cash transactions are recorded through Cash Book and Bank Book. Here cash transactions include bank transactions also.  All non cash transactions recorded through Journal. 

ya murali is right...............................................

 inspite of cash vouchers in journal ----use contra vouchers--------then no need to you using cash vouchers in journal

Generally what we do is that for direct payment or receipt under cash basis we use cash or bank account. But for provisional entries we use Journal Voutures for ready reference. For example while we receive a bill from a party for payment then as soon as we receive the invoice we put it under JV like Concern A/c Dr. To Party A/c Cr. So that in ready reference when we refer in future for payment to the party concern  at that time the creditor shows a credit balance in the ledger of the concern A/c. So after taking the necessary financial approval for the payment we just reverse the entry Debiting the party account and Crediting the Cash or Bank Account. So the basic logic behind is to pur the principal entry as soon as we receive an invoice and make payment after necessary financial approval. But for independent payment we can make the direct payment entry by debiting the Party A/c and Creding the Cash or Bank Account with out any provisional or JV entry.

I agree with Rajesh

I agree with Rajesh

I agree with Rajesh