How to adjust excess cash?? plz help

Others 5224 views 18 replies

Hi!

If the cash balance is actually higher on those days based on the accounted transactions, then there is no need to worry, as u can always prove that ur business is such that U may have high cash balances certain days...

 

I think if your high cash balance is what is reflected in books then I dont think any adjustment is required, moreover your end balance is normal. Hence in my opinion no adjustment are required in such cases. If u do, u may invite trouble, as u r going to create evidences for not existing aspect.

So book balance tallies with physical balance, dont do adjustment.

 

Pls do reply your final decision..

Replies (18)

Hi!

If the cash balance is actually higher on those days based on the accounted transactions, then there is no need to worry, as u can always prove that ur business is such that U may have high cash balances certain days...

 

I think if your high cash balance is what is reflected in books then I dont think any adjustment is required, moreover your end balance is normal. Hence in my opinion no adjustment are required in such cases. If u do, u may invite trouble, as u r going to create evidences for not existing aspect.

So book balance tallies with physical balance, dont do adjustment.

 

Pls do reply your final decision..

Murli,


I think you are trying to do some window dressing. Don't try to do it. Nowdays, these things are caught easily and you may invite for trouble.

u can show freight payments in small amounts ( to savegaurd TDs purpose) in case client is from manufacturing  base - but have to collect freight paid slips to different transporter parties as evidence

or  , you can show salary to a new staff again with evidences

U can show small freiht payments ( to savegaurd TDs provisions )  but have to collect various freiht slips from transporter in case client is from manufacturing base

or show salary to new staff member again showing evidences


CCI Pro

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