21 July 2010
No they cant show credit balances if credit balance is there in fixed assets its ur profit but in balance sheet it will be shown as nil and profit as in P & L A/c same is the case with investment and ya cash and stock can never be having credit balance..
21 July 2010
Bt if I have given Rs.200/- from my employer to expend... and he was out of station for 2 days... and during this period, the expenditure for business made by me was Rs.300/-... Then, will these excess amount (Rs.100/-) will be treated as minus cash balance in business books of accounts????
21 July 2010
It is like reimbursement. You should book the expenses only when actual payment is made to the employee and not at the time when the employee had actually incurred them.
Also there could be negative balance in investments.
In case of investment by a company in a partneship firm is overdrawn the investment figure will show negative figure.
Disagree on the above post to this limited extent only.
CAclubindia
