Cheque bounce entry

A/c entries 7494 views 6 replies

Pranesh Hemadri

Accounts assistant

35 Points Joined October 2011

Dear sir,

am working in NGO as a accountant the organization is running on Donors contribution only so i have one problem, actually we are received One cheque from Donors of Rs 5000/- so i have deposited into bank and pass the entry in Tally like

for Ex: under Receipt

Axis bank A/c 5000

Donation Received 5000

unfortunately cheque is bounced and in bank statement that is shown like goes to Clearing and it shown credit side Rs5000 and Very Three Days the cheque is bounced showing insufficent fund , in debit side, Rs 5000 so what i have to pass in Tally means reverse entry, i hope i will get the answer from you people , so kindly help us

Replies (6)

Sultan Mohiuddin

Practicing Chartered Accountant

56 Points Joined May 2009

You jut need to reverse the entry.

Dr. Donation received 5000

Cr Bank 50000

CA AnKiT BoHrA (AB)

Manager

25955 Points Joined November 2014

yes reverse the same entry which u had done when u received the cheque dear

mohit garf

student

23 Points Joined July 2014

yes u make reverse entry i.e. donation rece. a/c dr to axis bank

NILA REJESH P

Chartered Accountant

815 Points Joined October 2009

reverse the same entry.

Raghendra Tiwari

Accountant

31 Points Joined September 2009

Sir,

When a Cheque from Party bounce, and if that party has to pay or receive interest on his account.

and that interest is autocalculated from tally then in that case.. You will always see less interest due to difference in chq deposited date & bounce date. ..

Suppose if cheque deposited on 27 sept 2014 for Rs. 10,000/- and you made a bank entry on that day .

and chq bounced on 30 sept 2014,

then the interest amount in Automatic calculation will not show interest for perriod 27-sept 2014 to 30 sept 2014 by Rs.10,000/- at specified rate.

varsha seo

24 Points Joined June 2022

A cheque is usually a written commitment made by the payer to the payee against a sum of money. The payee, also known as the drawee, deposits this cheque in the bank. In an ideal situation, the payer’s bank transfers the funds from the payer’s account to the payee.