Negative cash balance

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ruchita singhania (Querist)
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24 August 2013 Dear Expert,
Plz provide me the solution ...If a comapany show negative cash balance in books of account..owner of the company does not know much abt this adjustment. This negative cash balance is due to heavy cash deposits in bank.Plz Suggest me the way hw i can adjust this negative cash or the way cash can be generated

CA Parul Saxena

CA Parul Saxena (Expert)
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24 August 2013 cash balance can not be negative as expenditure can not be more than that of cash balance thoroughly check the transactions with vouchers scrutinize the day balance with your software pick the day on which cash balance goes negative verify that particular voucher

CA UMESH DULAL

CA UMESH DULAL (Expert)
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24 August 2013 there should not be negative cash balance

if there is negative cash balance, it should be under suppression of sale or excess booking of cash expenses.

increase cash sales
or
decrease cash expenses

ruchita singhania

ruchita singhania (Querist)
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24 August 2013 actually cash balance is negative due to heavy cash deposits in banks

CA UMESH DULAL

CA UMESH DULAL (Expert)
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24 August 2013 if you do not have cash, then how come you deposit the cash in bank

in your case, it seems that sale has been suppressed.

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