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brs

(Guest)

y do v deduct wen cheques are deposited bt nt collected

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Tehsinkhan Pathan (CA CMA DISA(ICAI) B.COM) (3956 Points)
Replied 02 March 2011

THE MAIN AIM OF PREPARING IS TO RECONCILE THE BALANCE AS PER OUR BENK BOOK AND BANK STATEMENT i.e. BANK A/C .............................

THE ABOVE SITUATION IS REVERSED TO THE BELOW GIVEN SITUATION:-

E.G.:-

28/3/2010 BALANCE IS RS.200000/- FOR BANK BOOK AND BANK A/C. ON 29/3/2010 CHEQUE IS ISSUED RS.20000/- ........

THEN YOUR REMAINING BALANCE AS PER BANK BOOK WILL BE RS.180000/-(200000-20000).....

BUT CHEQUE IS NOT PRESENTED TILL 2/4/2010 .

NOW WE WANT TO KNOW THE BALANCE AS PER THE BANK A/C AS ON 31/3/2010........

THEN CHEQUE AMOUNT RS.20000/- IS REQUIRED TO BE ADDED TO KNOW THE REAL BALANCE AS PER BANK A/C ON 31/03/2010.....BECAUSE THE CASH WILL NOT BE PAID UNTILL THE CHEQUE IS NOT PRESENTED.........SO ACCORDINGLY THE BALANCE AS PER BANK A/C WILL BE HIGHER .............

THAT'S WHY WE REQUIRE TO ADD BACK THE CHEQUE WHICH ARE NOT PRESENTED FOR PAYMENT............