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Receipts and payment

Babita (Industrial Trainee) (106 Points)

27 May 2013

Hi,

if a cheque issed is not yet presented and lying in bank reconciliation statement, will that be a part of Receipts and payments A/c.

Thanks.

babita

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2 Replies

veeru sagar (BBE,M.com,CA Final ) (468 Points)
Replied 27 May 2013

As you have asked about the cheque issued for the payment but not present in the bank for clearing .

in such a case the payment shall be include in the receipt and payment a/c

bcoz accrual basis of accounting but on the other hand we have to show in the bank reconcilation that payment is not cleared

work is worship (Service) (2728 Points)
Replied 29 May 2013

When you issue any cheque to your supplier or any person, you need to pass payment entry immediately in books, that way it becomes part of your payment .

While reconciliing your bank account, this cheque will be shown under the heading "cheques not presented: in the bank reconciliation since the other person has not deposited the cheque in his books and hence not cleared from your bank statement.

Similarly, when you receive a cheque from your debtors, you again pass receipt entry in your books and you deposit in your bank and say it is deposited on the last day of the month so mostly you will not get credit in your bank statement and hence it will be shown under the heading " Cheques deposited but not credited".

So in both cases, it forms part of your receipt and payment.