We are passing the following below entries for the Cheque issue and cheque bounce of our supplier pls correct and suggest us if we are wrong or suggest us if there is any other better practice for this type of accounting. pls note that we are passing the below entries because our banker (bank statement) is also passing in the same manner
Supplier a/c dr
To Bank a/c
(for cheque issue)
Bank A/c ---Dr
To Supplier a/c
(for cheque bounce)
Supplier a/c--dr
To Bank a/c
(when cheque is passed in the second time presentment by the supplier)
pls suggest us the no. of entries needed to deal with bouncing of cheques and suggest for the better way
CAclubindia
