Cheques

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 Dear sir

we are in real estate firm and we received from customer security cheques aganist rent
this security cheque i want to enter in my books of accounts.please give me the journal entry and under which head i can create this ie(c/liability)
please help me

CA Prashant Gupta

CA Prashant Gupta (Expert)
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06 July 2012 let assume you got cheque from Mr. A

then entry will be

Bank A/c Dr
To Security Rent "A"
(Being security received from Mr. A on account of rented house no..........)

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Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 sir
we can't deposit to bank because they are giveing rent (unless if they did not give the rent we can submit to bank)and i want to keep this cheque in my accounts supperately.because my owner want to see this cheques in book of accounts

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CA Prashant Gupta

CA Prashant Gupta (Expert)
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06 July 2012 then you can use it like

Security Cheques A/c Dr
To security Rent A

it will effect Asset and Liability both. but auditor can object because it will effect your current ratio. But entry will be this

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Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2012 thank you very much sir