Hello,
We are paying some creditors through multicity chaques. Charges are borne by the creditor. Accounting entry made in our books is:
Sundry Creditor A/c ....Dr
To Bank A/c
To Bank charges
Is treatment for bank charges correct?
5 Replies
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 29 June 2011
if you can create bank charges reimbursed account, than it would be better.
because of this you can classify the charges paid by you to the bank and received from customer- my opinion
Keshav
(chartered accountant)
(286 Points)
Replied 30 June 2011
d of classification.its not an incorrect entry but it is also not adviced by many.since if at all,in future,any circumstance arise which requires classification of bank charges reimbursed,it wud require unnecessary additional efforts,so its better to adopt what 'future ca' had recommended in regard of classification.
CA, CMA
(Service)
(239 Points)
Replied 30 June 2011
Bank charges Reimbursement A/c will be opened under "Other Income" or "Bank Charges".. Which will be better
Keshav
(chartered accountant)
(286 Points)
Replied 30 June 2011
it wud b better under bank charges as even if it is not set off, bank charges wud be showing correct figure.
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
