Revised schedule and cheque issued but not presented

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This query is : Resolved

Mukesh Kumar (Querist)
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02 August 2013 Hi

As on 30th March 2013, in our bank account there was balance of Rs. 500000/- and on 31st we have issued cheque of Rs. 700000/- So as on March 31, 2013 there was an negative balance in our books of Rs. 200000/-

What will treatment of Negative balance of Rs. 200000/- in Balance Sheet as per Revised Schedule VI

thanks

Paras Chheda

Paras Chheda (Expert)
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02 August 2013 According to me Mukesh you need not account for the Chq issued of Rs. 7,00,000/- . You have to account this Rs. 7,00,000/- in the next accounting year when these chq clears.

Alternatively show it as Chq in transit in current year's balance sheet.

Mukesh Kumar

Mukesh Kumar (Querist)
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02 August 2013 Hi Paras

Whether cheque in Transit should be shown under "current Liabilities" or under "Cash and Cash Equivalent" in Balance Sheet

Thanks

Kumar

Kumar (Expert)
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02 August 2013 If the bank account does not have overdraft facility, under Other current liabilities - "Balance in Bank Account"

If OD facility is available, under Short term borrowings - "Overdraft"

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