outstation cheque - Printable Version

outstation cheque - Printable Version

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outstation cheque - sahil9500 - 10-23-2010

salam to all.
i hope u all will b fine.can anybody define the outstation cheque with examples.
with best wishes
Abdul Rahim

- [email protected] - 10-29-2010

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by sahil9500
 salam to all.
i hope u all will b fine.can anybody define the outstation cheque with examples.
with best wishes
Abdul Rahim
<hr height="1" noshade id="quote"></blockquote id="quote">

Dear Mr Sohail.

Kindly see below..

Mr. âAâ is the supplier of Inventory of XYZ Company since Jan-2001 to Dec -2006 (12 Month). Mr. âAâ Supplies inventory on monthly basis and company policy to settled the accounts of Mr âAâ ( as payable) on quarterly basis at the end of each quarter.. amount of Monthly goods is 10,000/-

Chq issued and clear / out standing are as follows

1QTR
Jan to Apr. Status of Payment

10,000 x 4 = 40,000

Status of Payment

Now Listen, chq of first qtr issued to supplier and and the account of of Mr. `A` are as follow

Goods 40,000
Mr. `A` 40,0000

(AT THE END OF FIRST QTR) PAYMENT MADE.

Mr.`a` aCCOUNT 40,000
bANK 40,000

But the payment of such amount is actually not made due to the reason that Mr`A` was not present in Bank to clear chq due to any reason the chq was not clear upto 15May.

So, at the time of reconciliation the cash book and bank accounts, there is a difference of such amount (Out standing chq). Which should be reconcile by given method for reconciliation.

Now, I think that ur confusion should be clear about Out standing CHQ.

Thanx

Umar.