if the chq is dishonored which entry will be passed???????? give example entry

if the chq is dishonored which entry will be passed????????
give example entry

Question Posted / rv1234

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if the chq is dishonored which entry will be passed???????? give example entry..

Answer / sandeep

Before a cheque get issued, they will pass a entry saying,

Vendor A/c Dr...
Bank A/c...........

When its been dishonored by bank, the entry will be:

Bank A/c Dr....
To vendor A/c

(no cash fluctuation will hit to both a/'c, the difference between bank and cash a/c will be found through BRS, after passing the reconciliation entry, both the a/c's will get equal...

Thanks,

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5 Yes

1 No

if the chq is dishonored which entry will be passed???????? give example entry..

Answer / snikgdha

BANK CHARGES A/C DR
TO CUSTOMER A/C
( BEING INSTRUMENT NO....DISHONORED CHQ AND BANK CHARGES.)

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0 Yes

0 No

if the chq is dishonored which entry will be passed???????? give example entry..

Answer / amit kumar tiwari

Party Dr. 1.00
To Bank A/c 1.00
(Cheque No…….. Being Cheque return against invoice No./Bill
No…………………….)

Is This Answer Correct ?

3 Yes

4 No

if the chq is dishonored which entry will be passed???????? give example entry..

Answer / sreedhar

Point No 1.
when received the cheque from Debtor/customer to be
accounted as

Bank account Dr
To Debtor/Customer Account
(Being Chque No XXXX received against bill Number XXXXX)

Point No. 2
if the same cheque dishonored, the above entry to be
reversed
Debtor/Customer account Dr
Bank Charges Account Dr
To Bank Account
(Being instrument No.XXXX Dishonored and Bank Charges
Accounted)

Is This Answer Correct ?

0 Yes

1 No

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