Recording of Cheque

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.