Brs

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2015 Dear Sir,

I have a one doubt regarding brs. when ever we collect a PDC from customer we accounted as a collection from customer. why we passing this entry without clear the amount? What is the reason?

Thank you for responding in advance

CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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17 June 2015 A PDC cannot be recorded in the bank column of the cash book as the cheque is not deposited in the bank. Therefore, this cheque will not appear in BRS.

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2015 Thanks for ur valuable answer. Sir my question is if we are receive a pdc from customer we are credited to customer account. Why we are doing this entry? Without encash of cheque? Why don't we pass the entry after clearing the cheque?

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CA. Sunil Gokhale

CA. Sunil Gokhale (Expert)
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17 June 2015 When we receive a PDC for all practical purposes the customer had made the payment and we have to issue a receipt to him and therefore record the transaction in our books. The customer has issued a cheque and therefore he has to record the same as payment in his books and therefore needs a receipt for the same.