in Ts grewal chapter cash book page 9.43 question 15, very confused...we we record endorse and cheque received from panna lal in journal or cash book....On meritnation textbook solution, it records both in cash book...so confused?
Radhika is correct here, In these type of questions the technique used by the Grewal textbook till last year was through Cash book, but as per new norms when a cheque is received and endorsed in favour of other person then this transaction is to be recorded through a journal entry because the cheque is not deposited in bank. In this case two entries are passed
i) At time of receiving cheque
Cheque in hand A/c Dr. 1200
To Panna Lal 1200
( Being Cheque received from Panna lal not deposited but endorsed)
ii) At time of endorsement
Kamal A/c Dr. 1200
To Cheque in Hand A/c 1200
( Being Cheque received from Panna Lal)
I would suggest you to record this entry through special journal and eliminate the entry recorded on June 15 and June 28 in the cash book. And add the above entires or a combined entry to the journal.