you'll be marked brainliest , describe why these accounts of journal entry are debited and credited, in detail
(1)Cheque received from Ram on January 10
Cheque in Hand A/c Dr.
To Ram
(2)Cheque received from ram is endorsed to Mohan on January 12
Mohan Dr.
To Cheque in Hand A/c
(3)If endorsed cheque to Mohan is dishonoured
Ram Dr.
To Mohan
Answers
Answer:
Explanation:
Why These debits and Credits:
1. If a business man receives so many cheques daily, he should maintain a Head Namely "Cheques is Hand" so that after a couple of time, this must be in his knowledge that How many cheques are in hand, How many cheques are deposited with the Bank and cleared.
Entry No 1 :-
This means he has received the cheque and not deposited the same with the Bank.
Entry No 2:
After receipt of cheque from Ram, he kept with him and he was to pay this amount to Mohan as such he paid the same cheque to Mohan so as to reduce his liability with Mohan.
Entry No 3:-
If the cheque is dishonoured means all the position with Ram as well as Mohan will remain the same as was before receipt of this cheque.
Ram Account was Credited on Jan 10 which reduced his liability as such he should be brought to pre position as such Ram account will be debited. Same is the case of Mohan
His account was debited now requires to be credited.
I think now the position will be clear.