As on 30th March 2013, in our bank account there was balance of Rs. 500000/- and on 31st we have issued cheque of Rs. 700000/- So as on March 31, 2013 there was an negative balance in our books of Rs. 200000/-
What will treatment of Negative balance of Rs. 200000/- in Balance Sheet as per Revised Schedule VI
02 August 2013
According to me Mukesh you need not account for the Chq issued of Rs. 7,00,000/- . You have to account this Rs. 7,00,000/- in the next accounting year when these chq clears.
Alternatively show it as Chq in transit in current year's balance sheet.