Un accounting cash balance

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A sole trader business has a £50,000 discrepancy between their accounting cash balance (£250,000) and their physical cash balance (£300,000). This suggests a transaction may have been omitted or incorrectly recorded, leading to a missing debit from the cash account. It's recommended to check for any missed opening cash balances or other recording errors. If no specific transaction can be identified, raising a cash sales bill for the difference is suggested as a way to balance the books.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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06 July 2021 sir,
A individual status business person un accounting cash balance Rs: 50 ,000/- difference show in books.
cash balance as per accounting books rs:2 ,50,000/-
cash balance as per trade rs:3,00,000/-
Query:
A person how to adjustment procedure un accounting cash balance rs:50,000/- in books.

Deepa B

Deepa B (Expert)
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07 July 2021 Obviously some transaction has been omitted or incorrectly recorded without debiting cash account due to which there is difference. Please check whether there was any opening balance of cash in hand which was missed out to be recorded in books of accounts. Otherwise there are hardly any chances of mismatch in double entry system.

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