Negative bank balance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2016 Hi,
One of are companies had Rs 2000000 in account on 29th March, however they issued cheque of Rs 2700000 on 31st March. Should i show Bank O/D and if yes where in the balance sheet as per schedule iii companies act 2013. Is there any other way to present if I dont want to show negative bank balance provided all the expense pertains to FY in question.

CA ABHAY GUPTA

CA ABHAY GUPTA (Expert)
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05 August 2016 show the cheque amount not cleared till 31st march as due in reconcillation under other current liability and balance as per bank under current assests

Amol S Joglekar

Amol S Joglekar (Expert)
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05 August 2016 what is the problem in showing -ve balance?...show -ve balance in sch iii
my counter query is as follows:
if you have the guts to issue a cheque of 2.70 against a balance of 2.00..without paying much attention to sec 138.......violating negotiable instruments act.....why do you show such a concern for Companies Act? Can you please explain, if you dont mind)

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