05-15-2009, 03:00 AM
Yep..
if you were expecting an amount from that customer, then there's going to be an A/R in your unadjusted statements..
So you need to pass following entry to reflect the following situation
1 DR Cash
CR A/R Customer A/c
2 DR Suspense Account
CR A/R Customer A/C
(If incoming cash was recorded in Cash head but not cancelled w/ A/R)
Similarly, if partial amount is received partial A/R receivable will be canceled while less cash amount is received against full A/R receivable settlement, difference will be charged to Income Statement..
if you were expecting an amount from that customer, then there's going to be an A/R in your unadjusted statements..
So you need to pass following entry to reflect the following situation
1 DR Cash
CR A/R Customer A/c
2 DR Suspense Account
CR A/R Customer A/C
(If incoming cash was recorded in Cash head but not cancelled w/ A/R)
Similarly, if partial amount is received partial A/R receivable will be canceled while less cash amount is received against full A/R receivable settlement, difference will be charged to Income Statement..
