How to increase Cash in proprietorship firm

There should be proper reconciliation of cash book on monthly. Cash in hand as per cash book must match with the cash in hand as per accounts. Reasons for low cash balance: You might have forget the double entry for cash deposits.. Go to cash book/ledger in Tallyerp9/any other accounting software there will be negative balance which display in red colour. If you deposit cash to bank account then you must pass the source entry for cash--Is it received from customer? Is it received from proprietor?? Is it the cash in hand deposited??

Eswar Reddy S • 19 March 2020

When you deposit cash to bank then you must account from where the cash has received to avoid the negative balance.. When you withdraw cash from bank account for expenses then you must pass contra entry first to increase the cash in hand .. Check the double entry for the cash deposits Cash withdrawals Cash received Cash paid