Dear sir
My cash is short by rs 250000.kindly tell me what is the account treatment .so I am filling the tax return for the financial year 2016-2017.
binay shaw (Student CA IPC / IPCC) (135 Points)
17 January 2018Dear sir
My cash is short by rs 250000.kindly tell me what is the account treatment .so I am filling the tax return for the financial year 2016-2017.
satish
(teaching)
(2046 Points)
Replied 17 January 2018
1. cash adjustment (if consider as loss)
Loss of cash A/c Dr xxxx
To Cash A/c xxxx
2. loss of cash charged to profit and loss a/c
Profit and loss A/c Dr. xxxx
To Loss of Cash a/c xxxx
MP
(employed)
(53 Points)
Replied 23 January 2018
Unless the cash is stolen or lost and proper FIR is lodged with the police, the deduction for Rs 250000/- may not be allowed for tax purposes. If the claim is bonafide and that there is unimpeachable evidence to support the actual loss then the deduction should be claimed for loss of cash.
The reasons for getting short cash should be analysed for eg, accounting expenses at a date earlier than actual payment, taking cash loans, depositing cash lying at home (due to demonetization), sales/ other receipts short accounted etc.
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