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?
CA, CMA (Service) (239 Points)
29 June 2011Hello,
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?
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
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
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
