sathis (accounts executive) (311 Points)
09 April 2009Dear Friends,
We are generally using journal entries for provisions and other, In tally cash entry not allowed in Journals but option give yes means it will accept. But we are using cash entries in Journal. Please explain it will helpful to me.
Thanx & Regards
Sathis
Cash entries shuold be entered through purchase,sale,payment or receipt.
but if you entered through journal there is not any problem........
the only difference is that while in case of entering through specific route(payment or reciept)
you will get a prompt message that there must me bank or cash.
Nitesh
(service)
(136 Points)
Replied 09 April 2009
Invoking the JV Facility for cash is dangerous and it helps in passing adjustment entry. There is chance of loseing control on cash and this point will be hihghlighted by auditors.
Rgds./Nitesh
Why you are using JV mode for cash entries. As per Accounting concept Journal vouchers are not containing Chq or Cash. So if you are using Cash in JV mode the voucher are either Payment or Receipt or Contra, Yes it will definitely iffect to your voucher series and also creat doubt to your auditor.
>> Rajesh
CMA KNVV Sri Vidya - Sri Kanth
(C.A.Final (New) ICWAI FINAL (New))
(11269 Points)
Replied 09 April 2009
ya rajesh is correct
Murali
(Professional)
(24 Points)
Replied 09 April 2009
In Accounting Practice, there were two types of transactions - one is Cash and the other is Non-cash. All Cash transactions are recorded through Cash Book and Bank Book. Here cash transactions include bank transactions also. All non cash transactions recorded through Journal.
Murali
(Professional)
(24 Points)
Replied 09 April 2009
In Accounting Practice, there were two types of transactions - one is Cash and the other is Non-cash. All Cash transactions are recorded through Cash Book and Bank Book. Here cash transactions include bank transactions also. All non cash transactions recorded through Journal.
Ganesha S
(Advisory Consultant)
(52 Points)
Replied 09 April 2009
ya murali is right...............................................
shailesh agarwal
(professional accountant)
(7642 Points)
Replied 11 April 2009
inspite of cash vouchers in journal ----use contra vouchers--------then no need to you using cash vouchers in journal
RAMSANKAR MISHRA
(service)
(44 Points)
Replied 21 April 2009
Generally what we do is that for direct payment or receipt under cash basis we use cash or bank account. But for provisional entries we use Journal Voutures for ready reference. For example while we receive a bill from a party for payment then as soon as we receive the invoice we put it under JV like Concern A/c Dr. To Party A/c Cr. So that in ready reference when we refer in future for payment to the party concern at that time the creditor shows a credit balance in the ledger of the concern A/c. So after taking the necessary financial approval for the payment we just reverse the entry Debiting the party account and Crediting the Cash or Bank Account. So the basic logic behind is to pur the principal entry as soon as we receive an invoice and make payment after necessary financial approval. But for independent payment we can make the direct payment entry by debiting the Party A/c and Creding the Cash or Bank Account with out any provisional or JV entry.
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