dear sir
in balance sheet cash balance is 1,5600000/- for the year fy 19-20
what we do expense in cash .
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Cash management
Replies (2)
Quick Summary
Not clear
If you are asking about how to use the amount which are in Balance sheet for the Expenditure in Cash then,
withdraw the money and use it and the effect of withdrawal Will decrease the amount of Cash at Bank balance on asset side and it will also decrease your Capital balance on liability side if the expenses are in nature of personal Expenditure
but if your question is how to adjust the amount of Cash expenditure then,
P/L account will be debited by the amount of cash expenditure and it will automatically balanced in Balance sheet.
withdraw the money and use it and the effect of withdrawal Will decrease the amount of Cash at Bank balance on asset side and it will also decrease your Capital balance on liability side if the expenses are in nature of personal Expenditure
but if your question is how to adjust the amount of Cash expenditure then,
P/L account will be debited by the amount of cash expenditure and it will automatically balanced in Balance sheet.
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