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Term Liabilities

RAJNISH RANJAN KUMAR (MANAGER) (21 Points)

24 June 2020

in One account Term loan (Excluding installments within one year) shown as negative.

whether it is right or wrong entry.

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yasaswi gomes (My grammar is 💯 good I) (7290 Points)
Replied 30 June 2020

Wrong entry. Nothing shows negative. For example, some erp uses double entries and if you post a reverse transaction it could display negative balance.

For example, if you purchased a car for 1,000 which has a car ledger created, if you double the amount in reverse journal like

Cash a/c 2,000

To Car a/c 2,000

instead of

Car a/c 1,000

To Cash 1,000

then, a negative value could be displayed as I also had seen such a negative balance but can’t remember what it is. Usually there are no negative values when you look up at account summary.