When we make BRS at the end of year and found some entries while making the BRS. Now suppose We have detected a Cheque which was issued by us but was dishonored by Bank due sign mismatch. We have debited the party and credited the Bank , So my question is whether we have to reverse the entry as on 31-03 ? If another treatment then please suggest.
21 May 2013
The original entry has been passed on a particular date and if you just cancel the old cheque and issue a new cheque then i dont think the new cheque will be issued for the same date on which original cheque was given. Best option is to pass a reconciliation entry at the year end in BRS and as and when a new cheque will be issued then at that moment pass a reversal entry along with a new entry.
CAclubindia
