I ve received a cheque from a debtor on 30.03.08 due to closing of bank for further 5 days I cud not b able to deposit into the Bank.
Q;- Shud Cheque b recorded into Cash book ?
Q;- Wat shud b the journal entry ?
I ve received a cheque from a debtor on 30.03.08 due to closing of bank for further 5 days I cud not b able to deposit into the Bank.
Q;- Shud Cheque b recorded into Cash book ?
Q;- Wat shud b the journal entry ?
definately it shld be recorded in cash book (bank column) as
bank a/c Dr.
to debtor A/c
it shld be made on 30.03.08.
on 31st march a BRS shld be prepared to show the effect of un deposited cheque.
Why shud bank b debited ? bcaz v r not depositing the cheque into the bank.
bcz its a cheque ( abank instrument). what u recieve is cheque n not cash. that cheque under all circumstances wiil be credited into ur bank a/c. so we assume that cheque is money that is being deposited in our bank a/c. so if u dnt deposit cheque on time u have to prepare aBRS.
we show that cheque recd under bank column of cash book and not under cash column of cash book . hope u gt it.
Mr. Faiz I ve not deposited cheque till 31.03.08 into bank question of BRS does not arise as for as my view is concerned. My question is in wat head it shud b recorded . I ve been giving u the entry , & tell me it is correct or not .
Cheques in hand A/c Dr.
To, Debtors A/c
Cheques in hand a/c shall b shown under Current Assets A/C
ya u r right in that entry also . only difference will be of BRS. in ur case no BRS is to be prepared.
cheque in hand will cm under current assets only as its a form of money which will be converted to cash in a near future.
Cheques in hand A/c Dr.
To Debtors A/c
This will be the correct entry. Ansari is right.
cheques in hand a/c Dr
to debtors a/c
I guess that is the entry...
and your right about the treatment Ansari
can any one clear me the concept of collecting banker and payee banker.....?
both have same meaning , it means the bank which collects/credits its customer a/c with the amount due to be credited
Thanx to all.
Cheques received but not deposited shall be debited to cheques in Hand A/c and not to Bank A/c. Entry shall be Cheques in Hand A/c Dr. to Sundry Debtors and when cheques are actually deposited in bank then the entry will be Bank A/c Dr. to Cheques in Hand A/c. Balance in Cheques in Hand A/c will always remind us that certain cheques are still to be depsoted in bank.
Thnx alot sharma sir fr ur clarification.
Your are not logged in . Please login to post replies
Click here to Login / Register
S.B.G. & CO. CHARTERED ACCOUNTANTS
New Delhi
CA Inter
View Details
CCI
Pro
India's largest network for
finance professionals