Revised schedule and cheque issued but not presented

This query is : Resolved 

02 August 2013 Hi

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

thanks

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.

02 August 2013 Hi Paras

Whether cheque in Transit should be shown under "current Liabilities" or under "Cash and Cash Equivalent" in Balance Sheet

Thanks


02 August 2013 If the bank account does not have overdraft facility, under Other current liabilities - "Balance in Bank Account"

If OD facility is available, under Short term borrowings - "Overdraft"



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