My client has outstanding in member's contribution which is booking amount in the balancesheet of previous year.Now booking to this member is cancelled.And allotment is made to another member.Can old member outstanding be paid by cash or journal to this new member possible
02 April 2010
helllo ashok Sir, I think can u pls give ans in detail as it seems tht ur answer do not correspond to the qustion. I think it will be paid by cash to other member and other entry for cash receipt. as both the members are not related. if they were related than u can pass journal entry.
02 April 2010
Agreed with MR Shivang. Sorry Mr Ashok,not clear with your reply. My view is that if they are related and co. opts to pass Journal Entry for the same, then he has to obtain letter of adjustment or some proof for making inter-se adjustment between the two persons.
Also, if their is no mutual understanding between the payer and the receiver, journal entry cannot be passed. It needs to be settled in Cash payment and receipt only.
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