sec 40a(3)

vishal kapoor (a) (66 Points)

02 December 2010  

My question is whether sec 40A(3) is applicable for cash deposited in bank account exceeding Rs. 20000 instead of making cash payment direct to Debtor.
eg Mr X(Punjab) sell goods to Mr y(Delhi) amounted to Rs. 50000.Now Mr Y deposited cash Rs. 50000 to the bank account of MR X.
My question is that what entry should passed in accounts?
what is the correct accounting treatment in this case.

thanks & Regards