Interested to Buy Any Domain ? << Click Here >> for more details...
When will the cash Book have a Credit Balance?
- 20 Answers
- 67304 Views
- Accenture, I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
If the Cash book shows credit balance, then the accounting
system is not properly followed. Basic logic is, you can not
pay what you don't have. Negative or credit balance appears
only if the total payments is more than the opening balance
of cash plus receipts from various sources including
withdrawal from bank as per the books of accounts.
Following are some of the reasons why cash book may show
credit balance :-
1. Not entering or short accounting of the opening cash balance.
2. Not/Short accounting all the cash withdrawn from bank/s.
3. Accounting of a payment more than once or accounting
excess amount than actual payment.
4. Use of personal cash for making official payments in the
event of shortage of cash in the office.
5. Failure to account cash receipt from the promoters or
cash received from customers or others.
This situation is avoided by reconciling the bank account
and matching the physical cash with the book balance on
daily basis. It's also important that the cash book is
checked by Accounts Supervisor or the Manager on daily basis.
| Is This Answer Correct ? | 9 Yes | 3 No |
Post New Answer View All Answers
Please help me in this entries Pass accounting entries for the following transaction in the books of XYZ company. A rendered professional service to company XYZ and sent an invoice dated 01/01/2016 for Rs 1,00,000/- + service tax Q1. Pass journal entry for the invoice received considering the service tax and TDS. Q2. Payment was made on 01/02/2016 by cheque. Pass payment entry.
when the ABC's personal bank to to his business bank money transferred(paid) then how to pass the entry.
Please provide me the entire format of P.F. & ESI
What is fiduciary accounting?
Is it possible contra entry in SAP FICO
What is an interest rate swap
Cash bill of sale so the company can deduct the amount.
Tell me what does the investment of personal assets by the owner will do?
Why we debit expenses and credit incomes ?
Under Accrual Accounting, How Are Worker Comp Premiums Handled?
Explain financial accounting. What are its characteristic features?
Who is debtor purchaser
Tell me how many types of business transactions are there in accounting?
what is the head for stock trnasfer
Hi All, Can any body Explain the End to End Flow of Product Costing in SAP with Integration Point and Journal Entries Involved in the Flow ?
