Cheque

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manohar (Querist)
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17 October 2016 Hi
any body can help me how to account discounted cheques from banks pls provide me the journal entries

Thank you

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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18 October 2016 Please give more details like who is discounting and value before and after discounting

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manohar

manohar (Querist)
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18 October 2016 EG: One Customer give PDC chq Amt.100000/- Dt:31/03/2017 we submited to bank they deducted amt 10,000/- balance amount give to us on 18/10/2016

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Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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19 October 2016 Debit Bank 90,000
Debit Discount Charges / Interest 10,000
Credit Customer 100,000

If the interest amount spans over more than one financial year, you can debit the year-end amount into pre-paid account. Hope this is understood.

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