Cash negative balance

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BHUSHAN DOKE

BHUSHAN DOKE (Querist)

14 August 2014 cash related entry ( receipt &payment) correct.

Nikhil Kaushik

Nikhil Kaushik (Expert)

14 August 2014 no. there should not be a negative balance unless backed by a bank overdraft

Ganeshbabu K

Ganeshbabu K (Expert)

14 August 2014 Some of receipts may not accounted timely
.
.
or there may be wrong entries with regard to date of transactions..

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

14 August 2014 1) See if opening Balance of Cash has been taken
2) Draw transaction wise balance and see the exact transaction after which the Cash Balance turns negative.
3) Check the transaction amount and ensure that amounts are entered correctly.

Its a basic thing that your cash balance should not show negative figure.

Rupesh Jain

Rupesh Jain (Expert)

14 August 2014 cash negative is not possible.

may possible
1. you receipt the cash not make the receipts.
2. withdraw from bank not entered in books
3. make cash sale but invoice not issue to customers
4.received from customer agst bal. not enter in books.

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