Dear Members
What will be the entries in following cases?
ABC Private Limited sells goods worth Rs. 10000 plus VAT 5% to X.
X gives a cheque of Rs. 10500.
The cheque of X gets bounced.
The bank charges Rs. 100 as cheque return charges.\
ABC Private Limited charges X for the dishonour charges of Rs. 100.
X gives ABC Private Limited cash of Rs. 10600.
Shivani
Ist entry- when recived chque
Bank a/c Dr 10500
To ABC Pvt LTd 10500
Second entry - when chq bounced
ABC pvt Ltd DR 10500
To Bank A/c 10500
3rd enty
Bank charges Rs 100
to Bank a/c
4th entry
Cash a/c dr 10600
to ABC pvt ltd 10600
5th entry
ABC Ltd DR 100
to indirect income 100
As this is only reimbursement of expense and not an income, following entries may be passed -
On incurring expense -
Dr. Bank charges 100
Cr. Bank 100
Reversal of cheque in books with recovery of expense from ABC ltd -
Dr. ABC Ltd. 10600
Cr. Bank 10500
Cr. Bank charges 100
On receipt of cash -
Dr. Cash 10600
Cr. ABC Ltd. 10600
Dear Friends,
As per your entries X sells goods to ABC Pvt Ltd. but as per details provided by MS. Shivani ABC Pvt Ltd. Sells goods to X. So the following entries will be made
| 1 | When Sells Made | |||
| X A/c | Dr. | 10,500 | ||
| To Sale A/c | 10,000 | |||
| To Vat Payable A/c | 500 | |||
| 2 | When Cheque received From X | |||
| Bank A/c | Dr. | 10,500 | ||
| To X A/c | 10,500 | |||
| 3 | When Cheque get bonced | |||
| X A/c | Dr. | 10,500 | ||
| To Bank A/c | 10,500 | |||
| 4 | When Bank Charges 100 Rs. | |||
| X A/c | Dr. | 100 | ||
| To Bank A/c | 100 | |||
| 5 | When Cash received from X | |||
| Cash A/c | Dr. | 10,600 | ||
| To X Ltd. | 10,600 |
1. When Sells Made to M/s X ltd.
X A/c Dr. 10,500
To Sales A/c 10,000
To Vat Payable A/c 500
(Being Sales made to M/s X ltd.)
2.When Cheque received From M/s X ltd.
Bank A/c Dr. 10,500
To X A/c 10,500
(Being Cheque received on behalf of M/s X ltd. )
3. When Cheque get bonced
X A/c Dr. 10,600
To Bank A/c 10,600
(Being Cheque of M/s X ltd. dishonoured and Bank Charges Incurred debited to M/s X ltd. for cheque dishonour charges recovered by the Bank.)
4. When Cash received from M/s X ltd.
Cash A/c Dr. 10,600
To X Ltd. 10,600
(Being Cash Received form M/s X ltd. in full and final settlement.)
1 When Sells Made
X A/c Dr. 10500
To sales a/c 10000
To Output Vat a/c 500
2 when cheque received and deposit into the bank in same day.
Bank A/c Dr. 10500
To X A/c 10500
3. when got bounced
X A/c Dr.10600
To Bank A/c 10600
4. when cash received
cash A/c Dr.10600
To X A/c 10600
Hai Member,
If bounce the cheque just two entry only
Adjustment Entry only
By.Party or Miscellaneous
To Bank
charges Also Same ENTRY..........
1.Your already entry passed.....for that particular chq so u have to put the Adjustment entry only....
agree with sandeep garg
CAclubindia
