25 November 2010
The firm has remitted an amount through RTGS to the bank account of the creditor. The entry in the books is Creditor a/c ... Dr To Cash A/c
We have come to know that the firm has paid the cash to bank for sending the money as RTGS. The transaction does not appear in the bank statement.
25 November 2010
I think provisions of 40A(3) will come into play as cash is being paid. But i think if two entries are passed then the purpose may be solved but the same not being reflected in bank statement there is no option for two entries. So disallowable.