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Recording of Cheque

Ansari (ca final) (444 Points)

05 December 2009

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 ?

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16 Replies

(Guest)

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.

Ansari (ca final) (444 Points)
Replied 06 December 2009

Why shud bank b debited ? bcaz v r not depositing the cheque into the bank.

(Guest)

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.

(Guest)

we show that cheque recd under bank column of cash book and not under cash column of cash book . hope u gt it.

Ansari (ca final) (444 Points)
Replied 06 December 2009

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

(Guest)

ya u r right in that entry also . only difference will be of BRS. in ur case no BRS is to be prepared.

(Guest)

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.

Shashi Bhushan (Learner, Jalandhar) (996 Points)
Replied 06 December 2009

Cheques in hand A/c Dr.

To Debtors A/c

This will be the correct entry. Ansari is right.

Hareesh H Sharma (Cleared IPCC..now article) (894 Points)
Replied 06 December 2009

cheques in hand a/c Dr

to debtors a/c

I guess that is the entry...

and your right about the treatment Ansari

CA. ESHAN GOYAL (ca) (63 Points)
Replied 06 December 2009

can any one clear me the concept of collecting banker and payee banker.....?

(Guest)

both have same meaning , it means the bank which collects/credits its customer a/c with the amount due to be credited

Ansari (ca final) (444 Points)
Replied 06 December 2009

Thanx to all.

Jag Bhushan Sharma (Faculty in a B-School) (633 Points)
Replied 07 December 2009

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.