Credit Cash Balance.

hi frds

 some new inputs...

See in proprietory n partnership n in lala bussiness....it is a usual situation,...u wondered y...???

it is beacause they do 2 bussiness in 1no. n 2no.   sumtime they record partial receipt and expenses...sumtime they hav to put dummy entries.. in books....

their real cash in hand and in books is entirely different they keep recording their actual cash situation in their kaccha records....

they keep on changing cash balances as per different situations and requirements....

now what u can do is to do some dummy entry or pass a book entry of receiving unsecured loan on pre date ....n pay it off after arranging suffiicient cash in books;...

nothing to worry...

mr. piyush firstly check your all accounting entries that you have made & then also if it comes negetive than make sure that you are  following the correct accounting policy & also book an overdraft entry also if you have really spend more than that you have in your pocket.

Mr. Piyush,

I understood your problem. I am also in a Company where these type of problems occurs. But we have to book that exp. after we have sufficient Cash in Hand. We cannot show negative cash any day.

So book your exp. after seeing you have much more amount then needed.

first thing, there should not be negative cashaccording to IT act... but it happens many times... you can show loan from someone else as cash received... or u can introduce capital by cash... there are many ways that you can adjust... it depends on your books of accounts..