sssvkSridharan R. (CA (Final) Salem. Tamilnadu. sssvksridhar@yahoo.co.in) (218 Points)
30 December 2011Dear colloquies,
Can any one of you tell me what would be the correct journal entry for the issuance of Post Dated Cheque to a supplier who is to send the material after receiving Post Dated cheque .
Advance Thanks.
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6881 Points)
Replied 30 December 2011
In tally when you posting payment entry just click combination of ALT+t
shivam gupta
(Student)
(142 Points)
Replied 30 December 2011
In my view the following entries will be passed
On the date of receipt of Material :-
Purchase A/c Dr.
To Creditor
On the date when creditor encashed the post dated cheque
Creditor A/c Dr.
To Bank
Explanation :- At the time of receipt of material , the co. had already given the postdated cheque to the creditor but as co. gave post dated cheque so creditor would not be able to encash the cheque until the date mentioned on cheque has arrived.
SO one thing if for sure that there was no cash outflow at the time of receipt of material so it will be considered as credit purchase , as & when the cheque becomes effective then payment entry will be passed in the books
If anyone think i m wrong then please correct me
Rajesh
(student)
(167 Points)
Replied 30 December 2011
In my view the following entries will be passed
On the date of Date of issue of Cheque :-
Creditor A/c Dr
To Bank A/c
On the date of receipt of Material :-
Purchases A/c Dr
To Creditor
Because First we issue the Cheque first after that we are receiving material entry has to pass as and when transaction is over
while Debiting Creditor( account shows Debit balance like Advance given to Creditor)
Rajesh
(student)
(167 Points)
Replied 30 December 2011
In my view the following entries will be passed
On the date of Date of issue of Cheque :-
Creditor A/c Dr
To Bank A/c
On the date of receipt of Material :-
Purchases A/c Dr
To Creditor
Because First we issue the Cheque first after that we are receiving material entry has to pass as and when transaction is over
while Debiting Creditor( account shows Debit balance like Advance given to Creditor)
bank account will tally in Bank Reconciliation statement
shivam gupta
(Student)
(142 Points)
Replied 30 December 2011
Dear Rajesh,
Post dated cheque means the cheque which have been written by drawer to a future date.
For example :- On 1 jan 2012 co.purchased some goods from creditor & give him A post dated cheque for 2 february
it means that creditor can encash that cheque either on 2 february or some after date of 2 February
So at the time of Purchase co . had issued the cheque but there was no cash flow that is the bank a/c of co. will not reduced until the creditor encash the cheque
SO we will first treat the purchase as credit purchase
& when the cheque becomes encashable then we can post the entry for payment to creditor
Rajesh
(student)
(167 Points)
Replied 30 December 2011
Even though no cash out flow
we have to pass the entry
Creditor A/c Dr
To Bank A/c
because we have to pass entry as and when occurs transaction
in your example
For example :- On 1 jan 2012 co.purchased some goods from creditor & give him A post dated cheque for 2 february
if there is audit (either internal or Statutory) they will raise the question where is cheque gone without any entry in the accounts...
therefore we are preparing Bank Reconcilation statement...
on 1st jan entry will be passed
it will get reconcile on 2nd feb
CA Kiran Sutrave
(CA)
(428 Points)
Replied 30 December 2011
Agreed with Rajesh. When payment is made you need to pass Bank Payment entry but before it press "Ctrl + T" and then account for the entry and as and when the material is received account for the Purchase entry.
shivam gupta
(Student)
(142 Points)
Replied 31 December 2011
Dear Rajesh.
& also think what will creditor do in their books of A/c. suppose Creditor sold goods to the co. on 10 mar 2011 & in avage CO. gave him post dated cheque which will only be encashed on or after 10 may 2011. then as u said BRS will automatically catch this transaction.
SO if u r saying that creditor will pass the following entry in his books
Bank A/c Dr.
To Debtor
it means the creditor got his payment in advance from debtor while the payment has not received yet so ur recording the transaction of payment while the payment has not receivet yet by the creditor . hence credior will record the receiving entry on the date when cheque become encashable remember i said When cheque becomes encashable not encashed because Post dated cheque is merely a piece of paper until it becomes encashable.
& if u think i m wrong go to google & search about it u will get that u r absolutely wrong
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5134 Points)
Replied 31 December 2011
Mr.Rajesh view is correct.
In my view the following entries will be passed
On the date of Date of issue of Cheque :-
Creditor A/c Dr
To Bank A/c
On the date of receipt of Material :-
Purchases A/c Dr
To Creditor
shivam gupta
(Student)
(142 Points)
Replied 31 December 2011
SIr Rama Chary i want you to go on google & search about the adjustment of post dated cheque
pawan swami
(ADVOCATE)
(46 Points)
Replied 31 December 2011
Mahender SIngh
(ACCOUNTS EXECUTIVE)
(22 Points)
Replied 27 August 2014
Dear sir,
Party issued cheque on date 04.08.2014
but entered which date
SYED
(SENIOR ACCOUNTANT)
(21 Points)
Replied 05 January 2015
PDC issued JV will be pass ......
at the time of purchase..
Dr. Purchase
Cr. XYZ Co.
at the time of payment
Dr.XYZ o.
Cr.PDC Issued A/c
at the time of Realisation of Cheque
Dr.PDC issued a/c
Cr. Bank a/c
CAclubindia
