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Demand draft will come under which head

Accounting Entries 12754 views 4 replies

Demand draft will come under which head and what will be the entry if we pay for a demand draft to CMO

Replies (4)
Quick Summary
Demand draft is treated under bank account. Entry for payment is CMO account debit and bank credit. Bank charges for DD are recorded separately under indirect expenses.

Demand Draft should be shown under Bank accounts

Demand Draft to CMO A/c dr
to Bank a/c

What's the purpose of payment?

DD charges which shown in tally

DD Expenses should be shown under Indirect Expenses in Tally


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