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Bank cc account shows positive balance on year ending

21 June 2016

We are availing Bank CC of 25 lakhs shown under Current Liabilities in Balance Sheet. After reconciliations of accounts we found that we have a positive amount of Rs.100000. How to show this in the our accounts and the necessary entries ?

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4 Replies

Jignesh (Student CA Final ) (40 Points)
Replied 21 June 2016

Hello Somesh Raddy,

If their is reconciliation entry means entry passed by you or Chaeque given by you but actually bank statments don't show their effect then their is no need to give any effect. But if entry passed like bank charges or other trancation which were shown in statemnt then it has give effect in Books of Account. Please show which trancation is to be their in your reconsiliation give effect accordingly.

m.somesh reddy (a) (36 Points)
Replied 22 June 2016

Sir, I got that, but the question is we are availing a CC account of Rs. 25 lacs which is shown on the Current Liabilites side of Balance Sheet. After making necessary enteries for the year ending 31.03.16, we found that a positive balance of Rs. 100000.00 is shown in the bank statement as it is our main account, all debits/credits happens through this account, i.e., we have a positive figure on the Current liabilties side of Balance sheet. Sir, we like to know how to make balance sheet tallly for the year ending 31.03.16.