Closing of account

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we have paid rs 6500 to one company throug making payorder from bank on 13-9-2011 tpwards  insurence expenses. and the 2011-12 account is closed. but today 30-3-13  on  found that the pay order which is made from bank is not cleared. i.e payment is not made to the party.

in previous year following entry is done .

DR: insruence expenses-6500

CR bank-6500

and the account is closed and the amount of insurence expenses is not carried forwarded.

Therefore now how to adjusted the account on 30-3-13?

hoping your reply please.

Replies (1)

First of all i would like to tell you that the entry which you have passed in 11-12 should be as below:

 1) Party A/c dr  6500

       to, Bank a/c   6500

 2) Insurance exp. a/c dr  6500

        To, party a/c                   6500

 

Now in 12-13 entry should be:

   1) Bank account dr.    6500

         To Party a/c                6500

Notes:

a) Please note that pos are valid for 3 months only.

b) Thish entry standing in your BRS as on date.


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