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Accounting for Cheques issued

Naina (CA Student) (477 Points)

08 July 2009

Hi Friends

I have come across a problem during an audit.

The proprietorship firm is issuing cheuqe dated 20th August, to its creditor, on 8th July. They are recording the follwoing entry on 8th July itself in date 20th Aug. with Payment Voucher No.1 in Tally.

Creditor A/c Dr.

To Bank A/c

On 8th July only, their accountant prepares a receipt for the same and the credior returns the counterfoil confirming that he has received the cheque dated 20th Aug., on 8th July.

Now if some another payment is to be made before 20th August, then how it can be entered with voucher no. 2.

Pls sort out my problem.

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10 Replies

Sivaperumal (SME) (22 Points)
Replied 09 July 2009

On 8th July

Creditor A/c Dr.

To Bank A/c

At the end of the month you do bank reconcilation to sort out the issue.

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Naina (CA Student) (477 Points)
Replied 09 July 2009

But Sir, the cheque is dated 20th August. I think, the payment to creditor through bank, should be passed on 20th Aug. The creditor may present the cheque later than 20th Aug.

Dilip (chief Accounts Officer) (79 Points)
Replied 09 July 2009

In Tally the voucher number gets adjusted automatically with the dates. If you dont want to change the voucher no automatically, you can set the voucher numbers to be entered manually.

(Guest)

All cheques issued before 20 th august having voucher no 1, 2, 3 etc. Voucher for the chque dated 20 Aug which was issued and recorded earlier should be automatically get the no according to date (In Tally this is done automatically). As concern to the Cheque that should be appear in Bank Reconciliation for the concern month.

>> Rajesh

saini dp (Accountan) (22 Points)
Replied 10 July 2009

all the above facts are true according tally

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Abhishek Mohta (ACON) (508 Points)
Replied 15 July 2009

It is OK that Tally will rearrange the voucher number according to Date but we should discuss here whether we should suggest our clients to pass such entries.

In my opinion post dated entries should not be allowed to pass and if client needs to maintain any record for issuing the cheques he/she can do the same in seperate excel file.

Again, if the client insist on passing some book entry then we can suggest the following entry to them:

Cheques issued A/c Dr.

To Suspense A/c.

On the Cheque date reverse the above entry and pass the following entry:

Creditors A/c Dr.

To Bank A/c.

vijay (self) (73 Points)
Replied 15 July 2009

I think the entry should be creditors a/c Dr to bank suspence a/c as when creditors accepting a post dated cheque now he ceases to be a creditor and bank a/c can be adjusted later

vijay (self) (73 Points)
Replied 15 July 2009

I think the entry should be creditors a/c Dr to bank suspence a/c as when creditors accepting a post dated cheque now he ceases to be a creditor and bank a/c can be adjusted later

CA Lovenish Bansal (JOB) (343 Points)
Replied 16 July 2009

In Tally, voucher is automatically adjusted, But practically company takes out the print of vouchers for their record, so it is difficult for make entry in back or forward date.Entry given by Vijay is right

Thanks,

Lovenish Bansal