Cpt help

cheques received from Sailendra not deposited on same day-journalise-

Ans- Cheque in Hand A/c Dr,  To Sailendra A/c (as per self evaluation test-CD -fundamentals of accounting)

whereas in the Accounts text book, Page 2.73, illustration 3, journal entries for chq received are -

Cash Book (Cash Column) Dr,   To Customer's A/c, (on the date of receipt ) , then 

Bank A/c Dr,  To Cash Book (Cash Column) , & then, Cash Book (bank Column) Dr,  To Cash A/c (on date of deposit). pl guide/explain how different / conflicting advice is given in Accounts text book & CD of ICAI.

 

 

 

Replies (1)

the question says that the cheque is not yet deposited so nowhere there is a bank involved yet, so the CD's answer is correct.

 

However the illustration's solution as mentioned gives the info as i guess that the cheque is recieved and even deposited as the first entry of getting it stays the same but later the entry of depositing the cheque follows(the contra entry of bank and cash(in cash book).

 

Hope it helped.

Keep Doing....tc

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