About cash in hand

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2016 If A Company have Cash In hand @ 5,00,000/- and they not deposit it in to bank till 31st December. And continue they show Cash in hand 5,00,000/- till financial year end and in books also. Then what will happen with them.
I think they can not show Cash In Hand, Because they have old currency notes in @ 5,00,000 Denomination.pls revert.

Sandeep Dharar

Sandeep Dharar (Expert)
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21 November 2016 No need to worry if u can explain ur excuse for such large amount of cash in hand. Deposit the cash in to the Company Current Account, and then u can withdraw the cash with new currency through cheque.

Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2016 Thats not my question that I have to deposit or not?? I all know about deposit. I Want to know that I will not deposit the same in current account and will remain keep same. Then what execuse I can give to department ....Thats my question

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Sandeep Dharar

Sandeep Dharar (Expert)
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21 November 2016 I think from the message given by our respective PM, it is already clear to all Indians that old 500 & 1000 notes are just a piece of papers. So its a common sense that if u r holding that, then u must exchange it with the new one. Otherwise no need to do anything with the other currency notes(this is with the physical currency). And regarding the books there is no need to show any deposit if u r holding notes other than denominations of 500/- or 1000/-.