When will the cash Book have a Credit Balance?

Answer Posted / griffen

Considering that the cash book is a one column cash book meaning it only records cash transactions only thenit can never have a credit balance but if its a two column cash n bank then if an overdraft is offered at bank then definitely we gonna have a credit balance on the credit side.

Is This Answer Correct ?    0 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Give ONE reason for Balance Sheet to be out of balance

1597


what is opening stock formula?

994


Explain me by saying, perpetual or periodic inventory system; what do we mean?

641


What do you mean by Bill of Exchnage.How to manage ? Explain

1509


what is journal entries for Vehicle loan settled with bank after Sale of the vehicle on profit or loss in case the party paid check direct to Bank .......???

5022






why only 6 months interest is charged on drawings

1731


When a company s accounting year-ends on a day that is other than the end of the calendar year what is called in accounting?

636


What other careers are you considering?

686


Tell me do you think accounting standards are mandatory and why?

613


for giving the salary in terms of cash to an employee for what minimum amount revenue stamp is reqired to paste the vouceher? up to what limited revenue stamp is required?

2707


swagat staryed business on 1st jan 2005 with cash on hand Rs. 10000

1437


how to solve cashbook question

2872


Horizontal balance sheet versus Vertical balance sheet

1743


x pay incentive to y with tds@10%.what is the journal entry in the books of x & y?

1694


The following transactions relating to ABC Ltd for the month of 20x1 a) Services performed in relation to income recieved in advance total $1500 b)Supplies expense includes $400 of supplies that are still on hand at 30 June c)Interest accrued on the bank loan is 750 d)At the end of june paid rent for 3 months (June, july Aug) $6000 e)Credit sales for the month of June 2009 amounted to $50000. Past expierence shows that around 1.5% of net credit sales are written off as bad debts. XYZ ltd, previously notified ABC ltd that they have gone bankrupt, will be able to pay $1000, which was recieved at the end of the month. The provision of doubtful debt has an opening balance of $800. f) The owners of ABC Ltd wish to revise the balance of the provision of doubtful debts account to $3500. g) Depreciation of one year on the delivary van is $1500. h) On 30 June 2009, ABC Ltd sold an item of equipment for $40000 cash. The cost of equipment was $50000 and had a accumulated depreciation balance of $2000 REQUIRED: Prepare the relevant adjusting journal entries for the month of June 20x2

1914