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Cash deposit by customer in current ac

07 May 2021

Dear Sir,

Customer deposit cash in current account as a advance for material.
please suggest which entry in books of account is write.
Bank account. Dr.
customer account cr. (receipt entry)

Cash account Dr.
customer account. cr. (receipt entry)

Bank account. Dr.
cash account Cr. ( contra entry)

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13 Replies

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 07 May 2021

Bank a/c

To Advance a/c

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 07 May 2021

Bank a/c dr
to Customer Advance a/c

Lotus Agrawal (Practice) (1357 Points)
Replied 07 May 2021

Not agree with Yasaswi ji and sourav. It should be treated as cash receipt and your 2nd and 3rd entry shall be passed.

2 Like

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 07 May 2021

It is correct, I didn’t think about the operations.

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 07 May 2021

Wait a minute, what happens to editing on caclubindia.com ?

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 07 May 2021

I was thinking final accounts and not ledge accounts @ Naveen Kumar

Lotus Agrawal (Practice) (1357 Points)
Replied 07 May 2021

@ yasaswi, what's your opinion now?

1 Like

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 07 May 2021

@ Lotus Choudhary, The last two entries are correct like u pointed out. To think, mind can play tricks sometimes, but when you sit in front of tally, this is what I will do pragmatically. ERP / work processes overrides subconsciousness or gist and other accounting things.

Lotus Agrawal (Practice) (1357 Points)
Replied 07 May 2021

Yeah. agreed.

yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 07 May 2021

Glad to know that. Sometimes, ppl are preoccupied, can’t understand the question or answer it in a hurry without analysing the situation while at home. Anyways, accountants are allowed to make mistakes and that is why materiality threshold and rectification of errors standard exists. In India it can be enforced 100% because Indian depression rates due to hot climate isn’t high. No one can be blamed.

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 07 May 2021

Forgot to tell my experiences, I graduated as a topper of this world ie., 100 marks in all modules and joined a company. Soon, when I enter this transaction

Bank a/c 1090

To Sales a/c 1090

due to some technical glitch, the software recorded it as

Bank a/c 1000

To Sales a/c 1090

Initially it is fine, but down the lane, every company has some problem like this, I don’t care what it is until corrections team finds out about it. I studied to work and not to tire myself on technical issue because it will make me tired to be alert 24/7, but I am willing to do my best. This theory is applicable to everyone and people feel the same like I said.