Is an entry made for outstanding checks when preparing a bank reconciliation?
No entry is made to a company’s general ledger for outstanding checks when preparing a bank reconciliation. The reason is outstanding checks are an adjustment to the bank balance. Outstanding checks are not an adjustment to the company’s Cash account in its general ledger.
However, if a company voids one of its outstanding checks, the company will need to make an entry to its general ledger. The entry will debit Cash in order to increase the account balance. The credit portion of the entry will likely be to the account that was originally debited when the check was issued.
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what is the effect of bank reconcilication on balace sheet.
i mean if some cheques given to party on 28.03.2008 and will come to bank 02.04.2008 than how to adjust the same in balace sheet .
plz give me reply on nitin2k10@yahoo.co.in
hai
what is the difference between inventory and supplies? also please explain the supplies expenses and that journal entries.
Hi Veena,
This is with reference to your question “what is the difference between inventory and supplies?” :
Supplies is a part of Inventory. Inventory is a broader term and it includes raw material, work in progress, finished goods besides supplies.
And, these all are current assets for the organisation. These items will get debited when they are bought.
Let me know if this helps and feel free to get back to me for any question.
Hi Nitin,
This is regarding your question related to bank reconciliation and balance sheet.
When cheque would be given to the party, we will debit the Party’s account and credit the bank accoont. So, on the balance sheet bank account would be lower and Accounts Payable(creditors) would also get lowered by the amount of cheque.
As we are following accrual basis accounting we do not need to make any adjustment to the B/S if the cheque is presented by the party later on.
Let me know if this helps.
what is Invoice ?
&
Type of Invoice ?
Pls send to my mail Id , rahul.narute@gmail.com
Invoice is just a statement issued to the buyers who have purchased some goods from on credit.It contains the price, quantity and payment terms,etc.