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Received cheque against sales, when it deposited into bank, it went dishonoured by the bank, what are the journal entries of these transactions?

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Question added by Kripesh Krishnan Kutty Nair , Merchandiser , Al Seer Group
Date Posted: 2015/04/15
Riaz Ahammed
by Riaz Ahammed , Financial Accountant , UTC Climate Controls & Security

Journal Entries

1. To record sales 

    Customer A/c          Dr.

      To Sales A/c          Cr.

 

2. Cheque received deposited

    Bank A/c                  Dr.

     To Customer A/c     Cr. 

 

3. Cheque Dishonoured

     Customer A/c          Dr.

         To Bank A/c         Cr.

Aamir Sheikh
by Aamir Sheikh , Senior / Engagement Auditor - Grade 2 , Ernst & Young Karachi Pakistan

1) Accounting Entry when sale took place:

Receivables   Debit

   Sales              Credits

 

2) Accounting Entry for when payment received:

Bank       Debit

   Account Receivable  Credit

 

3) Accouting Entry - dishonoured cheque:

 

Account Receivable              Debit

  Bank                                       Credit

Barkat Ali
by Barkat Ali , Accountant , Abdullah Bin Ahmed Bin Mohd Al Muzahmi Trading

1. Sold on Account 

Account Receivable Dr 

Sale Cr

2.Received cheque against sales

Cash Dr

Account Receivable Cr

3. Received cheque against sales, when it deposited into bank on same day.

Bank Dr

Account Receivable Cr

4.Checque dishonoured by the bank, 

Account Receivable Dr

Bank Cr

Jameel Rehman
by Jameel Rehman , General Accountant , TENAUI

Sales Entry

Customer A/c                 Dr

Sales A/c                       Cr

Receipt Entry

Bank Receivables             Dr

Customer A/c                  Cr

Deposit Entry

Bank A/c                         Dr

Bank Receivables              Cr

Dishonoured Entry

Customer A/c                   Dr

Bank Charges                   Dr

Bank A/c (chq amnt)         Cr

Bank A/c (Charges amnt)   Cr

Salman Ot
by Salman Ot , Accountant , SS & Associates

journal entry to record sales

 Bank Account    Dr

   To Sale

 

On dishonoured cheque 

 

Debtors Account    Dr

   to Bank 

    to Bank Charge 

manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

Once we receive the cheque and deposited to the bank :

BANK A/c Dr

To Sundry Debtors A/c

And one it dishonored :

Sundry Debtors A/c Dr

To Bank A/c

Mohamed Adnan
by Mohamed Adnan , Accounting Manager , Macho Systems

Journal entries 

1- To record sales 

Customer   Dr

      to / Sales Cr

2- Cheque  Recieving from client 

 Accounts recievable  Dr

    to  Customer 

3- Sending Cheque to the Bank

    Cheque under collection  Dr 

        to Account  receivable 

4 - Cheque Dishonoured 

     Cheque Dishonoured  Dr 

       to Cheque under collection 

 5- Sending Sheque  back to the client 

    Customer  Dr 

           to  Cheque Dishonoured    Cr

 

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