Cash shortage

if there is shortage of cash in books but in actual there is no such shortage then how to balance this cash in books as in actual there is no such shortage of cash.
Replies (6)
Quick Summary
This discussion addresses the common accounting problem of a cash shortage appearing in business books when there is no actual shortage. Experts suggest identifying the root cause, such as unrecorded sales or overstated expenses, and making necessary rectifications. If excess cash is available, it can be deposited in the bank, but it's crucial to establish the source of the cash and record it appropriately, whether through capital introduction, sales, or loans, while avoiding questionable practices.

It will be easier to say exactly what is the nature of business entity is involved in and type of entity i.e proprietorship or partnership. And why there is excess cash in hand than books. Otherwise simply Pass a cash brought in entry through capital account or cash sales etc..
Originally posted by : Jyoti Narang
if there is shortage of cash in books but in actual there is no such shortage then how to balance this cash in books as in actual there is no such shortage of cash.

This is accounting issue. Either you have not accounted cash collected from customers in books, or under-reported cash sales in books or excess reporting of cash expenses in books as against actual. Identify these and do necessary rectification.

Regards,

Manoj

Excess cash on hand , you may deposit in bank account. Source of cash is most important to establish.
Yes excess cash is deposited in bank.but how to arrange cash in books now and how to brought cash by propreitorship firm.

Avoid such questions on open forum. Ask to your consultant.

There must be some source for the cash receipts. They won't come out of thin air right. If the source is cash sales, Debit cash and credit sales. If the source is some hand loan taken from relatives or friends, Debit cash and credit their respective names

But like Mr. Pravin said if u r Trying to hide something from books or something, avoid such questions in open forum. Either message privately or ask ur consultant

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details