it assessess cash on balance finical year March ending example: cash balance as per books rs:100/- cash balance as per physically rs:120/- question: assessess difference amount adjustment compulsory.
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Quick Summary
This discussion addresses discrepancies found between a company's book cash balance and the physically counted cash. It highlights that such differences are unacceptable and require thorough investigation into each voucher to identify the cause. The thread also touches upon the serious legal and financial consequences of excess cash, including potential GST implications, penalties from government agencies, and income tax liabilities.
Excess cash found in Company is illegal. GST is applicable @ a higher rate for items sold by that company. If Govt Agency recovers cash, then a penalty will also be imposed. Income tax is also applicable.