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Please solve my problem (entry)

Mr.C.A (ipcc) (173 Points)

31 October 2011

it is the problem of b.com 1st year page(A-60)Triple column (Three column)

9 he received cheque for 1350 in full settlement for 1400 from ajit, deposited the same in back.

18 he received back ajit's cheque dishonoured from back , bank charged 10 towards the same.

20 he received from ajit a fresh cheque for the total amount.(including bank charges)

21 he deposited Ajit's cheque into bank

"""""""""""in 20th entry, i don't know what happening " my friend posted the full on (1400) + 10 bank charges , i know about 10 but what about full amount 1400 what about discount ? and my friend posted 20th entry in cash column but not in bank column .........plz help me guys.........

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12 Replies

Mr.C.A (ipcc) (173 Points)
Replied 31 October 2011

and i forgot to say " one more entry :D , """""" Drew cheque for petty cash 100"""""""" is it a contra entry ??????????? one more entry please " 18 withdrew rs.5000 from s.b.i rs.3000 for office use and rs.2000 for personal use """why we are not including office use amount 3000""""""" last " transferred rs.5,0000 from s.b.i to b.o.i "is it a contra entry ??? "i am waiting for you help

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praveen kumar kalluri ( student) (1032 Points)
Replied 31 October 2011

i think on 20 th cheque full amount including bank charges meance Rs.1350+10 &20 th the entry gos to cash column only becouse the same was not deposited in same day .

praveen kumar kalluri ( student) (1032 Points)
Replied 31 October 2011


	and i forgot to say " one more entry :D , """""" Drew cheque for petty cash 100"""""""" is it a contra entry ??????????? one more entry please " 18 withdrew 5000 from s.b.i 3000 for office use and 2000 for personal use """why we are not including office use amount 3000""""""" last " transferred 5,0000 from s.b.i to b.o.i "is it a contra entry ??? "i am waiting for you help

yes

(Guest)

Yes, cash withdrew for PETTY CASH is contra entry coz ultimately cash is being withrawn frm bank (which is a contra entry) & after dat if cash is being used for petty cash purpose or other purpose, den its d matter of ur choice i.e. its upto the person withdrawing cash to use it for any purpose.Entry for withdrawing cash will b a CONTRA ENTRY in any case.

Entry for 18

Cash A/c Dr. 3000/-

Drawings A/c Dr. 2000/-

To SBI A/c 5000/-

Entry for 20

Entry will be for the full settlement amt ( coz its been already decided to pay such amt i.e. 1350)

Hence the amount of entry will be Rs. 1350 plus Rs. 10 (bank chgs)...

APOORV SAXENA (Chartered Accountant) (794 Points)
Replied 31 October 2011

In first one, it will be 1410, its Total amount i.e. total amount to be recd. .

Logic : Discount is given for early payment but here early payment cheque was dishonoured.

Otherwise you can take an assumption.

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APOORV SAXENA (Chartered Accountant) (794 Points)
Replied 31 October 2011

second one,

1. drwaing cash for petty is a contra entry.

2. withdrawl from SBI

Cash a/c 3000

Drawings a/c 2000

To SBI a/c 5000

3. it will be contra

BOI a/c 50000

To SBI a/c 50000

Mayank Mall (CA-Final) (316 Points)
Replied 31 October 2011

Originally posted by : APOORV SAXENA
	In first one, it will be 1410, its Total amount i.e. total amount to be recd. . Logic : Discount is given for early payment but here early payment cheque was dishonoured. Otherwise you can take an assumption.

I too agree with apoorv bhaiya as discount is just a matter of time in various cases and once time's passed, it can not be availed. Thus the full amount will be 1410. Else it should have said that the cheque was issued on the discounted value + bank charges or something.

Naveen Chandra (Accounts Officer (Receivables)) (44 Points)
Replied 31 October 2011

I Think followig entries should be done:

1) Bank A/C Dr. 1350

Discount Allowed A/c Dr. 50

To Ajit A/c 1400

2) Ajit Dr. 1410

To Bank A/C 1360

To Discount Allowed A/c 50

3) Bank A/c Dr. 1410

To Ajit 1410

4) Petty Cash A/C Dr. 100

To Bank A/c 100

5) Cash A/C Dr. 3000

Drawing A/C Dr. 2000

To SBI Bank A/c 5000

Naveen Chandra (Accounts Officer (Receivables)) (44 Points)
Replied 31 October 2011

Originally posted by : APOORV SAXENA
	In first one, it will be 1410, its Total amount i.e. total amount to be recd. . Logic : Discount is given for early payment but here early payment cheque was dishonoured. Otherwise you can take an assumption.