CASH SHORTAGE FOR BANK TRANSACTIONS

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If your business books show a single bank account but your AIS/TIS data reveals a second, unrecorded account, you may face cash balance shortages. To resolve this, if the second account's transactions are not business-related, treat its opening balance as an addition to your capital. This ensures your accounts accurately reflect your financial position.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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24 November 2021 SIR,
Assessee maintained single bank account show in books and it returns.but assessee AIS AND TIS information download another bank account detailes mentioned.2 nd bank account transactions entered in books cash balance shortage in books.
Question:
Assessee how to adjustments cash balance shortage in books.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 November 2021 How the accounts are maintained? The second account balance would add its capital, and not cash.

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Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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06 December 2021 sir, a person maintained single businesses account only.cash shortage adjustment procedure

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 December 2021 If transaction in second account are not of any business related transactions, add the opening balance of the account with capital account.

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