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Correction of negative cash balance

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a I.t. trader maintained accounting books and sale,purchases and all business expenses transaction up to date.if negative cash balance some different dates( total 4 lacs) show in daybook.
how to correction of negative cash balance in daybook.
Replies (3)

Then there are some unaccounted revenues.

You should reconcile every item again, if there is no discrepancy then check whether some expenses were done through personal money which is now bought into business technically as capital.

So to say, either some payments have be done from more money from personal cash of the trader or some revenues received are not written up.

Cash on loans received procedure is correct or if any another procedure


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