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INTERESTING QUERY

CA Mayank Gupta (Chartered Accountant) (95 Points)

17 August 2008

CAN ANYONE TELL WHAT IS THE MEANING OF THIS ENTRY

CASH A\C Dr

TO CASH Cr

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22 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 17 August 2008

Cash which was brought in from an unknown source was frittered away without trace!

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CA. C V SURYAM (Practising Chartered Accountant) (865 Points)
Replied 17 August 2008

Without narration can it be called as an entry at all. These type of entries which I was taught in college days, my lecturer used to tell that without narration an entry is equivalent to "a hindu lady without kunkum".

Any entry should itself tell us the purpose of passing such entry by way of narration. You trace out the narration, you will understand.

qarni (student) (1220 Points)
Replied 17 August 2008

come in & go out

CA Annie (Chartered Accountant ) (747 Points)
Replied 17 August 2008

Thats a wrong/ fraudulant entry no doubt.

CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 17 August 2008

Either fraudulant entry or wrong entry illogically passed for incoming and outgoing of cash on the same day.

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Ca Natbar Lal Jha (CA) (65 Points)
Replied 18 August 2008

sir, i want to know in detail about AS-30,31,32. plz send it................

Veena (CA) (36 Points)
Replied 18 August 2008

Originally posted by :Natbar Lal
"	sir, i want to know in detail about AS-30,31,32. plz send it................	"

please visit institute web site www.icai.org

CA. Tarun Navlani (Employee) (60 Points)
Replied 21 August 2008

Originally posted by :Mayank Gupta
"	CAN ANYONE TELL WHAT IS THE MEANING OF THIS ENTRY CASH A\C Dr TO CASH Cr	"

There is one creditor who has supplied you Air conditioner and his business is run in the name and style of "CASH A/C". You are now making payment to that person.

Kindly inform the amount of transaction also.

And make sure payment does not exceed Rs. 20000/- in order that Sec. 40A(3) is not attracted..............

CA Naveen Kumar Agrawal (Chartered Accountant / MBA) (939 Points)
Replied 21 August 2008

Originally posted by :Tarun Navlani
"	Originally posted by :Mayank Gupta " CAN ANYONE TELL WHAT IS THE MEANING OF THIS ENTRY CASH A\C Dr TO CASH Cr " There is one creditor who has supplied you Air conditioner and his business is run in the name and style of "CASH A/C". You are now making payment to that person. Kindly inform the amount of transaction also. And make sure payment does not exceed Rs. 20000/- in order that Sec. 40A(3) is not attracted..............	"

really interesting query n skillful answer by Tarun. but i want to make some ammendment in that

Cash Cr is not our creditor but Debtor(name of customer is "Cash") and making us Payment in Cash for goods supplied to him earlier.

Logic behind this, we generally not use the word "A/c" at the end of Account which is personal by its nature.

Cash Cr here Cr may be stands for Consumer/Customer & used to differentiate Cash (Personal) with Cash A/c (Real)

So the entry is like this

Cash A/c .....................Dr.

To Cash Cr

one more thing i want to add (Kindly note Mr. Tarun)that sec. 40A(3) of income tax act does not applicable for a payment (in cash exceeding Rs. 20000/-) being made for a capital expenditure.

CA Mayank Gupta (Chartered Accountant) (95 Points)
Replied 21 August 2008

the meaning of entry is , CASH COMES FROM PERSON WHOSE NAME IS CASH

WE DONT't WRITE A/C IN PERSONAL ACCOUNTS

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CA Naveen Kumar Agrawal (Chartered Accountant / MBA) (939 Points)
Replied 21 August 2008

Originally posted by :Mayank Gupta
"	the meaning of entry is , CASH COMES FROM PERSON WHOSE NAME IS CASH WE DONT't WRITE A/C IN PERSONAL ACCOUNTS	"

Yes, definitely

Jigar (Student) (661 Points)
Replied 28 August 2008

your query is wrong

it is fundamental law of Accounts that same a/ c can't be deited and credited at the same time

CA Naveen Kumar Agrawal (Chartered Accountant / MBA) (939 Points)
Replied 29 August 2008

Originally posted by :Jigar
"	your query is wrong it is fundamental law of Accounts that same a/ c can't be deited and credited at the same time	"

My Dear Jigar, U r Right in ur second statement but not in first one that d "query is wrong". I think u had not read my answer carefully. I had clearly mentioned in my reply that Both d a/cs are not same. They just appear to be same by their nominclature and not by their nature. one of them is real in nature while the other one is personal. Hope u got it. if u still stand wid ur past comment u may challange my reply in this forum n u will definitely find a true solution.

Regards,

CA Naveen Kumar Agrawal