INTERESTING QUERY

Cash which was brought in from an unknown source  was frittered away without trace!

Without narration  can it be called as an entry at all.  These type of entries which I was taught in college days, my lecturer used to tell that without narration an entry is equivalent to "a hindu lady without kunkum".

Any entry should itself tell us the purpose of passing such entry by way of narration.  You trace out the narration, you will understand.

come in & go out

Thats a wrong/ fraudulant entry no doubt.

Either fraudulant entry or wrong entry illogically passed for incoming and outgoing of cash on the same day.

please visit institute web site www.icai.org

There is one creditor who has supplied you Air conditioner and his business is run in the name and style of "CASH A/C". You are now making payment to that person.

Kindly inform the amount of transaction also.

And  make sure payment does not exceed Rs. 20000/- in order that Sec. 40A(3) is not attracted..............

really interesting query n skillful answer by Tarun. but i want to make some ammendment in that

Cash Cr is not our creditor but Debtor(name of customer is "Cash") and making us Payment in Cash for goods supplied to him earlier.

Logic behind this, we generally not use the word "A/c" at the end of Account which is personal by its nature.

Cash Cr here Cr may be stands for Consumer/Customer & used to differentiate Cash (Personal) with Cash A/c (Real)

So the entry is like this

Cash A/c .....................Dr.

       To Cash Cr

one more thing i want to add (Kindly note Mr. Tarun)that sec. 40A(3) of income tax act does not applicable for a payment (in cash exceeding Rs. 20000/-) being made for a capital expenditure.

the meaning of entry is , CASH COMES FROM PERSON WHOSE NAME IS CASH

WE DONT't WRITE A/C IN PERSONAL  ACCOUNTS

Yes, definitely
 

your query is wrong

it is fundamental law of Accounts that same a/ c can't be deited and credited at the same time

My Dear Jigar, U r Right in ur second statement but not in first one that d "query is wrong". I think u had not read my answer carefully. I had clearly mentioned in my reply that Both d a/cs are not same. They just appear to be same by their nominclature and not by their nature. one of them is real in nature while the other one is personal. Hope u got it. if u still stand wid ur past comment u may challange my reply in this forum n u will definitely find a true solution. 

Regards,

CA Naveen Kumar Agrawal

Think u have a point there Naveen, that way it does make sense!!