Login

When a cheque is received from someone, which a/c will be debited (cash or bank)?

My friend mentioned that 'If a cheque is received and is not deposited in the bank on the same day, it is debited to cash a/c taking it to be cash'.

But in some of the transaction it is Bank a/c Dr To someone's a/c and in some it is Cash a/c Dr To someone's a/c.

What is the correct journal entry for cheque received?

Please explain with examples.

there is a chage in syllabus this year . before the change we use to d/r bank or cash according to the transaction but now it is replaced by cheque in hand A/c

cheque received but not deposited into bank is treated as 'cheque in hand' so the entry for receive of cheque will be:

cheque in hand A/c dr

to x (say x is our debtor)

(being cheque recieved ut not deposited into bank)

and when we deposit the above cheque into bak the entry is:

bank A/c dr.

to cheque in hand A/c

and if the cheque is deposited on the same date the entry is:

bank A/c dr.

to x

hope it helps.

  • 11
View Full Answer

cheque receive is treated as cheque in hand so the entry for receive of cheque will be

cheque in hand ...........a/c dr {because cheque comes in}

to x (suppose) {because x is a giver}

if we receive a cheque we use to write bank a/c dr but due to change in this year we will treat cheque received as cheque in hand and if we will deposit the same cheque on same date then the journal entry will be

bank..............a/c dr

to cheque in hand a/c

  • 4

cheque receive is treated as cheque in hand so the entry for receive of cheque will be

cheque in hand ...........a/c dr {because cheque comes in}

to x (suppose) {because x is a giver}

if we receive a cheque we use to write bank a/c dr but due to change in this year we will treat cheque received as cheque in hand and if we will deposit the same cheque on same date then the journal entry will be

bank..............a/c dr

to cheque in hand a/c

  • -2
What are you looking for?