Security Cheque to Supplier and its entry in books of purchaser

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Businessman
33 Points Posted on 10 November 2022

Dear sir

In retail trading normally we have to provide security cheque to suppliers. Making the entry in suppliers ledger does not reflect the actual outstanding. Plz suggest how to make entry in books.

 

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On 10 November 2022 at 20:04 Report
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This discussion addresses the accounting treatment for security cheques provided to suppliers in retail trading. The core issue is that a standard entry might not accurately reflect the true outstanding balance owed to the supplier. Participants are seeking advice on the correct journal entries to ensure financial records are precise, especially when dealing with open-dated cheques.

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Finance
4592 Points Posted on 10 November 2022

Dr. Supplier 

Cr. Bank 

Or in the bank leger debit supplier

In the supplier ledger credit bank

 

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On 10 November 2022 at 20:14
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Businessman
33 Points Posted on 15 November 2022

Dear Sir.

What if the cheque is open dated?? The same entry should be passed or else.

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On 15 November 2022 at 18:33
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Finance
4592 Points Posted on 15 November 2022

Yes. Thats a brs issue

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On 15 November 2022 at 19:03

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