Double entry

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This topic contains 3 replies, has 3 voices, and was last updated by Avatar of tariqkath tariqkath 5 months ago.

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  • January 16, 2013 at 2:34 pm #113751
    Avatar of tariqkath
    tariqkath
    Participant

    Dear all,

    If a customer is paying us his debt by cheque the double entry to record this transaction is :
    Dr. Bank
    Cr. A/R(customer a/c)

    My question is if this cheque is bounced and bank sent us back this cheque so will it be there any double entry to record this transaction.

    Waiting for early respons.
    RGds,
    TRK*

    January 16, 2013 at 7:01 pm #113761
    Avatar of fidget
    fidget
    Moderator

    If the cheque bounces then the customer hasn’t paid and therefore the debt must be restored to their account, so the double entry would be:

    Dr: A/R customer a/c – dishonoured cheque
    Cr: Bank – dishonoured cheque

    January 17, 2013 at 3:07 am #113783
    Avatar of rosalawrence
    rosalawrence
    Participant

    Do the reverse by cr bank and dr customer
    thats what I would do to record the entry

    January 17, 2013 at 10:46 am #113794
    Avatar of tariqkath
    tariqkath
    Participant

    many thanx Fidget & Rosal :)

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