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Cheque clearance

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Surinder

Assistant

262 Points Posted on 29 December 2020

Sir

We are using mannual books of account (no any type software) we issued a cheque to firm in March same cheque clear from bank April 9,2020 Now bank balance and book balance not matching please suggest how to match the books balance with bank.

Replies (2)

Quick Summary

If your bank and book balances don't match due to a cheque issued in March but cleared in April, you need to prepare a Bank Reconciliation Statement (BRS). When preparing the BRS, add back the amount of the cheque issued to the party in your books of accounts as of March 31st. This will help reconcile your book balance with the bank balance.

Abhishek Selvam O

258 Points Posted on 29 December 2020

No it will not match u have to prepare brs and while filling financials u have to take bank balance as per books

prasad Nilugal

2353 Points Posted on 29 December 2020

While prapering Bank reconciliation statement , you have to Add back amount of cheque issued to party in your books of accounts to tally your book balance with bank balance on 31st march .(cheque issued but not cleared ).