What is the Journal Entry for a Cheque Received?

by Sunil
(Kathmandu, Nepal)

Journal entry for a cheque received


Q: What is the journal entry for the following:

Received cheque from a debtor Rs1,00,000

(this means 100,000 Rupees - Indian currency)

Comments for What is the Journal Entry for a Cheque Received?

Click here to add your own comments

Journal entry - received cheque from Ram
by: Vengadathri

Cash a/c Dr xxx

To Ram a/c xxx

(Cheque received from ram but not deposited into the bank account)

CHEQUE ENTRY
by: ARUN KAUSIK

LET ME TEACH YOU IN SIMPLE LANGUAGE.
WE ARE RECEIVING THE AMOUNT FROM THE DEBTOR OR PARTY.
SO, THE AMOUNT SHOULD BE CREDITED IN THE NAME OF THE PARTY, MEANS PARTY IS DEPOSITING AMOUNT.
SO, THIS ENTRY SHOULD BE IN Cr. SIDE AND WILL BE LIKE THIS

TO THE DEBTOR (PARTY NAME )
CH. NO. 000001 1,00,000

ON THE OTHER SIDE, WE ARE NOT RECEIVING THE CASH, WE ARE DEPOSITING THE CHEQUE IN THE BANK, HENCE THE AMOUNT SHOULD BE DEBITED TO BANK.
SO THE ENTRY IN Dr SIDE WILL BE
BY UCo BANK
CH. NO 1,00,000

How to Deal with a Bounced Cheque (Doesn't Clear at the Bank)
by: Anonymous

If someone pays me rent with a cheque and I record it properly, and then it doesn't clear at the bank (bounced cheque). How can I change this in my records after it has already been posted?

Just reverse the original journal entry.

Remember, the original entry was:

Dr: Bank
Cr: Debtor/receivable account

This meant that our bank account increased and the value of money owed to use (debtor account) is less.

To reverse this we do the following:

Dr: Debtor/receivable account
Cr: Bank

This reduces the value of our "bank" account in our records and increases the debtor account back to where it was - showing how much is owed to our business.

Simple as that.

- Michael Celender
Founder of accounting-basics-for-students.com

Journal Entry - Bank vs Cash
by: Anonymous

If the cheque is not yet deposited in the bank then why is the bank account debited?????

Only if the cheque is deposited into the bank on the same day, then bank is debited... otherwise it is treated as cash in the business.

Entry for Cheques Receivables
by: Ali

You received the cheque but the cheque is not in the bank yet.
If you want to record it before the cheque is cleared in bank the entry will be:

Cheques receivable db
Accounts receivable (debtor) cr

Then you wait for the cheque clearance.

After clearance of the cheque (when the money literally is in your bank account) then the entry will be:

Cash (bank account) db
Cheques receivable cr

Entry for cheque received by a debtor
by: Aryan Mangal

Bank A/C Dr. 1,00,000
To Debtor A/C 1,00,000

The entry should be like
by: Treasa

Bank A/C Dr 1,00,000
To Debtor's A/C 1,00,000

Entry
by: Anonymous

Trade receivable
Short term borrowing

entry
by: Anonymous

Cheque in hand a/c 100000
To debtor 100000

Cheque Receiving Entry
by: Santosh

Who have given cheque - its not debtors its creditor right?

It's debtors.

Creditors are people you owe. Debtors are people who owe you.

- Michael Celender
Founder of Accounting Basics for Students

The Entry
by: Krishna

Bank a/c Dr . 100000
To Debtors. 100000

krishna
by: Anonymous

Debit : Bank/Cash
Credit : Party

dd
by: Anonymous

A/c # 100000
Customer 100000

Answer cheque receivable entry
by: Kong chenda

Cash.............1,000,000.00
A/R or N/R...............1,000,000.00
To record received payment from debtor.

Entry for Cheque Received
by: Bilal Wahid

Debit the bank and credit the party to whom the cheque is received

Click here to add your own comments

Return to Ask a Question About This Lesson!.











© Copyright 2009-2018 Michael Celender. All Rights Reserved. 
Click here for Privacy Policy.