Demand draft entry in tally

1) Earnest Money Deposit A/c   Dr

Bank Charges A/C                  Dr

    To Bank Account              Cr

2)             Bank  A/c                                 Dr

    Bank Charges (if any on cancellation) A/C                  Dr

    To Earnest Money Deposit              Cr

Dear Sir,

We have gave the DD as Earnest money deposit one of our tender purchase.How to pass this entry in tally.& Earnest Money deposit comes under which expenses.

Pls reply me anyone for the above mail

Under what head earnest money EMD will be shown in Tally?

Since the earnest money will eventually be returned, It comes under 'deposits'. The entry posted by CA Kedar is correct.

Handling deposit and withdrawal cash are the primary work of the clerk. Along with that clerk also undertakes the receipt of cheques, drafts, dividend warrants, and pay orders. Payment clearance works like Verify cheques, issue demand drafts, etc. Maintain a daily record of balance. for further information must visit following source 
 

https://www.tendersontime.com/publish-tender/

Originally posted by : Praveen
	Hello, I got a Demand Draft created for Earnest Money Deposit (EMD) to participate in tenders. the Queries are, 1. Wat is the entry i need to pass for this bank transaction of created an EMD Demand Draft. 2. The tender is cancelled & DD comes back. Wat entry need to be passed for this bank transaction in Tally.   Regards, Praveen Terani.

1. Wat is the entry i need to pass for this bank transaction of created an EMD Demand Draft.

what is EMD Demand draft Under 

It will comes under Deposits as Current Assets.

Government can withhold the earnest money deposit and it wont give interest on it either. Keep this in mind while accounting it. Some tenders have very high EMD. Check NHAI tenders for example.