If cash has been deposited at bank by a customer named "X" directly, can we take the entry as:
Entry 1
Bank a/c ...... Dr
To, X a/c
my colleague insists up on the above entry.
but the obvious entry should be :
Entry 2
Cash a/c ..... Dr
To, X A/c
Bank a/c ...... Dr
To. Cash a/c
which is the correct entry as per accounting principal.
Is the first entry correct, if not why?
Help me in this context.
Dear DVD,
As per my opinion the first entry is correct for the simple reason that no cash has been received by the company then how you can route a transanction through your company's cash account. Its as same as ECS (Electronic Clearence System), when some funds are debited or credited in your bank account through ECS do we route it through CAsh A/c, the answer is no. So, the first entry is correct.
first entry is right how can u pass entry for cash if there is no cash transaction
the first entry is correct
in 2 one
as per ur treatment
we generally use cheque in hand a/c
but no need to use it here
First entry is widely using...
| Originally posted by : Sudev Namboothiri | ||
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First entry is widely using... |
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| Originally posted by : rahul jain | ||
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first entry is right how can u pass entry for cash if there is no cash transaction |
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You can't effect the cash balance unless the company physically received it. So first entry is absolutely correct and second one is wrong
I think first entry is correct one
As per my opinion 1st entry is correct
First Entry is correct
The first one is Correct as there is no cash transaction then how can we pass entry for cash
but suppose chequeq received from debtor on 3rd april and deposited in the bank on 5th april. Then what will be the journal entry on 3rd april and 5th april??
will it be like this on 3rd april
Cash Dr.
to Debtor
and on 5th april
bank Dr
to cash a/c
AS PER MY OPNION 1ST ENTRY.
Friend (Rajendra Nath Datt) u r wrong.
CAclubindia
