Advances from patients or cash loans from creditors correct procedure

one of the it assessee accounting records maintained for hospital accounts. if cash balance some amount shortage show in books.

Question:

Assessee advance received  from patients or cash loans from creditors correct method cash balance adjustment in books.

Replies (2)
Quick Summary
This discussion addresses how to account for a cash shortage in hospital accounting records. It explores whether advances from patients or cash loans from creditors are the correct way to adjust the balance. The consensus leans towards better options like adjusting against cash expenditures or treating it as a loan or capital introduction from the owner.

Better to adjust it against any cash expenditures.

Any loan or capital introduction of owner could be better option.

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