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Date of recording payment and receipt

Others 345 views 4 replies

Chintan Ravasa

Student CA IPC / IPCC

36 Points Posted on 22 March 2017

Hello everyone.. In following case when the payment and receipt entry would be recorded by payer and payee in their respective books.. Date on which cheque prepared by the payer - 01-01-2017 Date on which cheque received by payee - PDC - 01-02-2017 Date of Cheque - 31-03-2017 Date on which cheque deposited into bank by payee - 05-04-2017 Date on which cheque realised and credited to the account of payee by bank - 08-04-2017 Date of recording payment in the books of payer? Date of recording receipt in the books of payee?

Replies (4)

V P Narasimhan

Accounts Manager

795 Points Posted on 22 March 2017

It's better to a/c it on 31.03.17 anyhow the same will be shown in BRS

CA Amrita Chattopadhyay

Audit & Assurance

13864 Points Posted on 23 March 2017

In the case of payment, the date of recording shall be the date of cheque i.,e 31.03.2017.

In the case of receipt, the date of recording shall be 05.04.2017. Anyways in the amount if not reflected in the books will be shown in the Bank Reconciliation Statement

Chintan Ravasa

Student CA IPC / IPCC

36 Points Posted on 23 March 2017

Ya but payee needs to show cheque in hand on 31-03..by crediting the party.. right?

CA Amrita Chattopadhyay

Audit & Assurance

13864 Points Posted on 24 March 2017

While making the payment, you need to debit the party and credit the cash. But while booking of expenses for the services / goods taken from the creditor, you need to debit the expense and credit the party

Step 1 : Booking of expense

Step 2: Making the payment

In case of advance payment the steps would be reversed.