How to account for these transactions?

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Omar2723
Posts: 8
Joined: 16 Apr 2022, 02:09

How to account for these transactions?

Post by Omar2723 »

hello,
hope you all doing well :)

I have a question about the accounting treatment of this case

let's assume that the customer is going to have a contract with us to get an apartment in the future
when the customer signs the contract he gives us a Bank cheques that have a different collection dates but according to the contract he MUST pay all the payment so basically if one cheques was rejected from the bank he should provide us with another way to collect the payment (Cash for example)

so my question is if as he signs the contract
should we make a entry or not ( as i can see no event happened to record it ) and then we record AR when the cheque is due and a contract liability then
is it right accounting procedures ?
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Marek Muc
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Joined: 15 Oct 2018, 17:21
Location: Warsaw, Poland
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Re: How to account for these transactions?

Post by Marek Muc »

let's say you would be given a chance to post this question again, what more meaningful title would you use? ;)
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