Expenses

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2011 our company has paid expenses through cash and now it is showing negative balance.
what should we do.

CMA Pravat Kumar Parida

CMA Pravat Kumar Parida (Expert)
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03 October 2011 Your company paid expenses through cash ,after entering this transaction in books of account your cash book shows negative cash balance(which is practically impossible) .
so this shows that before entering this transaction , you have forgotten certain cash received entries, so check it first.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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03 October 2011 Yes you must have forgotten certain receipts entry and also there is a chance of amount wrongly punched while entering the expenses voucher.
Please check...

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 well there may also be hance that you may have forgotton the cash withdrawl from bank

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 also check that many of the expenses may have been met by particular person other than the company cash but wronly booked as expenses from the book of company

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 there is also possibility that some person may have been given advance either from bank or cash, and now when he has submitted the vouchers, the same may instead of adjusted from advance wrongly booked as cash expenses

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 please prepare BRS and also properly look for the advance adjustment properly