In cash book Cheque received today and deposited tomorrow will be treated as ........

General Accounting Principles Accounting cycles

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In cash book, Cheque received today and deposited tomorrow will be treated as

shown on the receipt side of bank column of cash book

shown on the receipt side of cash column of cash book

noted as cheque in hand , not recorded in the cash book till the day of deposit

noted as cheque received on the credit side of cash book

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Explanation:

Cheques in hand is an asset till the time it is not deposited in the bank account. Once deposited it would be recorded on the receipt side ( DR) side of the cash book. But, on the day of receipt but not deposited it is neither cash nor bank. Hence, not recorded in the cash book on the day of receipt.

By: NIHARIKA WALIA

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Basil Kennedy

The answer given is wrong. When a cheque is received it is recorded in the cash column in the receipts side of the cash book. And when it is deposited the next day, it is recorded in the receipt side of the bank column in the cash book.