Negative cash
This query is : Resolved
21 April 2008
If i have a negative cash balance what is the way to solve the problem
Is it possible i will receive it from director in form of cash.
Is it possible i will receive it from director in form of cash.
22 April 2008
How much is -ve cash balance?
22 April 2008
YES A COMPANY MAY RECEIVE CASH AS AN UNSECURED LOAN FROM A DIRECTOR.
BUT THEN THE DIRECTOR MUST BE ABLE TO SHOW THE SOURCE FOR THESE FUNDS IN HIS BOOKS.
SEC 269 OF IT ACT LIMITS BE KEPT IN MIND.
BUT IF BANKS /FIN. INST. ARE ALREADY LENDERS , THESE UNSECURED LOANS FROM DIRECTORS CANNOT BE PAID BACK BEFORE REPAYING BANK LOANS.
STILL EASIER IS TO SHOW AS CASH ADV. FROM A CUSTOMER / RECOVERY OF VERY OLD DEBTOR BALANCES BELOW RS. 20000/ PER DAY IF POSSIBLE.
OR SHOW REFUND OF TOUR ADV. IN CASH BY AN EMPLOYEE IF YOU HAVE ANY DUES.
SOME COS. SHOW RECEIPT OF CASH ON SALE OF SCRAP / FACTORY YARD WASTE.
R.V.RAO
BUT THEN THE DIRECTOR MUST BE ABLE TO SHOW THE SOURCE FOR THESE FUNDS IN HIS BOOKS.
SEC 269 OF IT ACT LIMITS BE KEPT IN MIND.
BUT IF BANKS /FIN. INST. ARE ALREADY LENDERS , THESE UNSECURED LOANS FROM DIRECTORS CANNOT BE PAID BACK BEFORE REPAYING BANK LOANS.
STILL EASIER IS TO SHOW AS CASH ADV. FROM A CUSTOMER / RECOVERY OF VERY OLD DEBTOR BALANCES BELOW RS. 20000/ PER DAY IF POSSIBLE.
OR SHOW REFUND OF TOUR ADV. IN CASH BY AN EMPLOYEE IF YOU HAVE ANY DUES.
SOME COS. SHOW RECEIPT OF CASH ON SALE OF SCRAP / FACTORY YARD WASTE.
R.V.RAO
24 April 2008
very well answered Mr R V Rao
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