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.
i could not understand your problem...can u explain with imaginary figures??
I think what your accountant is asking is how to suppress sales by 3 lakhs when corresponding cash has already been deposited in bank.
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.
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Or sometime you have withdrawn cash and then re-deposited it...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.
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.
Show it as Advance received from different customers. Raise subsequent bills (offcourse false) later. and adjust them..
CAclubindia
