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Cash entry more than sales

Sohil (Learner) (631 Points)

26 February 2011

Well as year ending is coming close our accountant have said that we have deposited 3 lakh rupee more than our cash sales.

I wanted to know how to correct this entries?(increase cash sales or withdraw cash)

And if not done will that harm the balancesheet .How can this detail come into eye of someone accessing the account detail except bank statement as i cant figure it out from profit loss statement or balancesheet.

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7 Replies

nishil saluja (student) (72 Points)
Replied 28 February 2011

i could not understand your problem...can u explain with imaginary figures??

Ramkrishna Mokashi (Chartered Accountant) (734 Points)
Replied 02 March 2011

I think what your accountant is asking is how to suppress sales by 3 lakhs when corresponding cash has already been deposited in bank.

Sohil (Learner) (631 Points)
Replied 03 March 2011

Well here we have deposited 13 lakh rupee deposited into our account.But cash sale so far is 10 lakh.

He is asking cash sale should have been around 15 lakhs as indirect expense too needs to be counted.

So what are the measures to correct this anomaly.Either i withdraw cash from account or show more cash sales .WHich will be a better stuff for me to do.

Angad kr kannaujiya (Studant) (169 Points)
Replied 09 March 2011

FIRST CHACK UR OPNING CASH BAL.THEN FIND UOT UR SOURCE FROM WHARE IT WILL CAME. IF U THINK THAT IT WAS CASH SALE WHICH WAS NOT RECORDED IN UR BOOK OTHERWISE CASH WAS NOT REGULERLY WITHDRA FOR UR EXPANCE .

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 10 March 2011

either you are not showing all the cash sales in your books or excess cash deposited is your own capital contribution.

Or sometime you have withdrawn cash and then re-deposited it...

whatever the case may be, first you have to find the exact source of such excess cash deposit.

Sohil (Learner) (631 Points)
Replied 10 March 2011

Yes our business is somewhat similar to what local kirana stores.Each and every entry cant be recorded as if we cut bill for every transaction paying tax on same will increase price hence lost of customers will stop purchase from our shop.

We deposited excess cash as we had to reduce our bill liabilities and one of my old home loan liability.

Now whats the procedure to correct this anomaly.Also what if say at end of financial year t the amount comes to say 75k excess cash deposited than cash sales.Will this bring any doubtfull entry into p-l statement.