Entry of Cheque in hand on 31st March

you have to show it as debtors.

there is no need to make any adjustment as on 31st march. it will be adjusted for next financial year

Originally posted by : rachit jain
	you have to show it as debtors.

agred                

I agree with Amanpreet.

You should show Total debtors as Rs. 11 lacs on 31st march, 2011 and furhter can make entry of cheques recived from debtors.
 

The practice followed by the company to recognise
the cheques bearing date of 31st March or
before, though received after 31st March as
‘cheques-in-hand’ in the financial statements for
the period ending on 31st March is not correct

SEE THE ATTACHMENT

Hi..

Dev K Sharma

u have to show it as a detors balance as on 31st March.

Originally posted by : AMANPREET SINGH
	there is no need to make any adjustment as on 31st march. it will be adjusted for next financial year

Agree...:)

Hello Sharma,

Mr. Naveen jain only give the correct updation to you.  please follow the same.

As on 31st march you have  debetors balance Rs.11.00 Lakhs.   Your cheque dates on after 31st march.

1) Post dated cheques not valid in your AD.  

2) In case your cheques as discounted before 31st march you take care of discounting entries in your ledger.

Regards

V.Bala

Mr. Navin Jain has advised correctly, need to follow the same.

I think that reply given by Mr. Jain is irrelavent in the context. The question pertains to post dated cheques.  

As per NI Act, Post dated cheques are not vaild.

Hence the cheques which are dated after BS date, even though received before before BS date dont require any adjustment. 

Hi Ramesh, I guess there is nothing irrelavant in the text of Jain... read fully the file given by Jain once again....

Simple funda here - As per the accounting policies we never recongnise future receipts.... we cannot know on those post dates money may not be available in those accounts and may be checks bounce , so how can we estimate that... On cash basis if we see we recongnise only on the receipt of cash......

Correct me if i am wrong......

Thank you.

If u go through the text given  by jain, case there was " Accounting for cheques bearing the balance
sheet date or before but received thereafter"

If u see the question here, "the cheques are dated after BS date but received before before BS date"

am i right in saying that?

see the line though received after balance sheet date but not means only received after.... what say...

I think, the case refers to cheques received after BS date.