Responsive Menu
Add more content here...

Cash shortage

Question BankCategory: OthersCash shortage
Kollipara sundaraiah asked 5 months ago

A professional income it person prepared balance sheet f.y.22-23 and some months cash shortage (nagative) show in account books.
Question:
Assessess source of cash shortage (nagative) generated adjustment in books.

1 Answers
Rana answered 4 months ago

Negative cash not possible if all entries are done on correct date with correct figures. 
Please open your cash ledger and check dates of all the entries and value of all the entries. FOr example, Sometime, we received some cash on 1-1-2022 amounting to Rs. 10000/- and earlier balance was 2000/- making the total 12000/-.
Then on 2-1-2022, if paid rs. 9000/- then balance is 3000/-
But if my mistake, date of first entry is done at 3-1-2022
then negative cash will be shown on 2-1-2022 as below
opening cash Rs. 2000
paid on 2-1-22 rs. 9000
Balance on 2-1-22 Rs. -7000
this is because cash receive entry of 1-1-23 was wrongly posted on 3-1-23. 
Such error may also be due to wrong value or wrong date..
if all dates and values are correct. Please check your opening cash balance. if all are ok… then your data may not be actual but it may be fake…as in actual negative cash not possible. 
 

Your Answer

10 + 15 =

error: Content is protected !!
Scroll to Top