Accounting question for cash balance

example :
A business person purchase of new apartment value rs:30 lacs .but cash on hand balance rs:25 lacs available in books as on apartment purchase date.
question:
If person rs:5 lacs cash shortage amount how the increased procedure cash balance in books as on apartment purchase date.
Replies (3)
Quick Summary
This discussion addresses an accounting query regarding a business person's purchase of a new apartment. The individual had a cash balance of Rs 25 lacs but the apartment cost Rs 30 lacs, leading to a Rs 5 lacs shortfall. The core question is how to account for this cash balance increase and whether 'cash on hand' includes bank balances. The consensus is that significant property purchases should always be conducted through banking channels like cheques or NEFT/RTGS, not with physical cash.

Is the cash on hand balance consists of hard cash or it includes bank balance as well.
normally purchase of properly in cash shouldn't be done. everything shud be through bank.
Purchase should be through bank
All the transactions in case of purchase of immovable property to be done through Bank. Either payment is made through DD or Account payee Cheque or any other mandatory e payment system of banking transactions such as neft Or rtgs

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