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Negative cash - how to deal

Page no : 2

Desperado (Cost And Management Accountant)   (129 Points)
Replied 28 December 2012

Dear,

The simplest way is to Hold the petty expense vouchers untill petty cash is received.
If an expense of Rs. 5,000 is borne by the manager and petty cash has a balance of Rs. 500 only, then hold the voucher of Rs. 5,000 untill petty cash cheque / amount is received. As soon as petty cash is received, pay the amount contributed by the Manager and adjust Rs. 5,000 in petty cash / cash book.

 

The only consequence would be the contradiction in between the dates of incurrence of expenditure and reporting of the same.

 

Best Regards,
Desperado.

 




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