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Transfer of Cheque

14 February 2020

Suppose I received a cheque from our Debtors and can I transfer these cheque directly our creditors?
Please answer this question as soon as.

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 14 February 2020

How is it possible...?
Here the cheque write the name A then B can't use the cheque...!

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prasad Nilugal ( GST Practitioner & Accounts ) (14851 Points)
Replied 14 February 2020

Cheque Issued in the name of company ,Can not be transferred directly to creditors .

Ajit Choudhary (32 Points)
Replied 14 February 2020

If not mentioned company's name then

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 14 February 2020

No...
It's not correct / good...

MOHAN VERMA (ACCOUNT MANAGER) (47 Points)
Replied 14 February 2020

Yes you can through sign on the back side and the name of person to whom you want to transfer

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RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 14 February 2020

Then How it will be accountable in books...??

Kapadia Pravin (17264 Points)
Replied 15 February 2020

If it's account payee and had to be so under 40A(3).

You can ask directly your debtor to issue cheque in your creditor party name. If he agrees then it's ok.

By doing, what purpose you seek to obtain ?
Keep transactions straight and identifiable instead of complicating.

Spurto Consultancy Services (Consultant) (1891 Points)
Replied 15 February 2020

If the Cheque is Account payee then you cannot transfer the cheque directly to your creditor.

Further, if you saying the name of the Company is not mentioned- its an incomplete cheque(only name not mentioned) then you can name it with your creditor after taking consent of your debtor.

In the account just make a journal entry and adjust your creditor liab with debtor balance.