Cash deposit in s/b a/c.

This query is : Open

Abhishek Roy Choudhury (Querist)
Follow

03 May 2017 Dear Sir,
A Assesse who is a businessman (Proprietorship Firm) has deposited cash of Rs. 2.50 Lacs in his savings bank account. I want to know what does the deposit signifies i.e. whether it signifies amount collected from debtors, or his cash in hand at the end of the financial year or anything else. Moreover what is the effect of deposit in the Profit and Loss and balance Sheet of his firm.

Thanks,
Abhishek.

CA Idris M K

CA Idris M K (Expert)
Follow

04 May 2017 You need to verify Source of Fund.

Does the person has any other source of income apart from business income, from which cash would have been received, or gifts received.

In case the person has only business income, then his drawings from the business has to be verified.

Message likes : 1 times

Abhishek Roy Choudhury

Abhishek Roy Choudhury (Querist)
Follow

04 May 2017 Dear Sir,
You mean to say that the collection from debtors by cash which he deposited in his savings bank account will be treated as drawings of Rs. 2.50 Lacs.

Thanks,
Abhishek.

krishna

krishna (Expert)
Follow

05 May 2017 Dear Abhishek
Cash collected from debtors should have been deposited in current account. If it is deposited in savings account, he should adjust the accounts properly.
Is your question linked ot cash on hand as on 08th Nov 2017??

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now