Negative cash
This query is : Resolved
24 August 2013
Dear experts
I am working in company. There is a negative cash in out books of accounts. The marketing dept.and owner of company does not know much about accounting. They just deposited the cash in out bank (i mean heavy cash like 25-35 lac). One thing is sure we have not missed any voucher We have the negative cash of 1.60 cr. Our ca is also aware of this things. I want to know that what kind of action we can face from department. ( money laundring).
Please tell us what things we can do.
I am working in company. There is a negative cash in out books of accounts. The marketing dept.and owner of company does not know much about accounting. They just deposited the cash in out bank (i mean heavy cash like 25-35 lac). One thing is sure we have not missed any voucher We have the negative cash of 1.60 cr. Our ca is also aware of this things. I want to know that what kind of action we can face from department. ( money laundring).
Please tell us what things we can do.
24 August 2013
1)On Assessment it is taken as some unaccounted cash is lying in books,,because how can you make payments if cash is showing negative balance,,and consequently they may ask you to pay 30% tax on it
2) it may be cause of diffference in cash receipt and cash payment vouchers,,if you can adjust date of voucehrs,,you can make balance to positive figure,,it can be done
2) it may be cause of diffference in cash receipt and cash payment vouchers,,if you can adjust date of voucehrs,,you can make balance to positive figure,,it can be done
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24 August 2013
I already told you that we have not missed any vouchers , we can adjust the date of vouchers, but the the transaction of cash deposited is so big, that changing the date of vouchers does not take much effect. We have deposited the cash in bank on a particular date, we can not change the date of that vouchers, Because in bank statement also reflects that cash deposited. I think one thing is sure we can make the positive cash. We are still running in negative. I want to about the departmental inquaries on audit etc.
Thnks
Thnks
24 August 2013
First of all please confirm is the negative balance have as on 31st March.
And if any negative cash balance find out by the IT Department the same amount shall be treated as other undisclosed income and added back to your total income and compute tax liability as well as for wealth tax purpose also it consider as unaccounted cash and treated as asset for wealth tax purpose and computes wealth tax liability.
Any first please confirm me is negative balance having as on 31st March.
OM SAI SRI SAI JAI JAI SAI
And if any negative cash balance find out by the IT Department the same amount shall be treated as other undisclosed income and added back to your total income and compute tax liability as well as for wealth tax purpose also it consider as unaccounted cash and treated as asset for wealth tax purpose and computes wealth tax liability.
Any first please confirm me is negative balance having as on 31st March.
OM SAI SRI SAI JAI JAI SAI
26 August 2013
We have positive cash on 1.4.2013. In the month of may we have deposited 1.50 cr to bank account. I also heard from out ca that this case falls under money laundring , ..........
26 August 2013
I.e means you are asking about the current financial year i.e 2013-14.
So then you have to confirm the actual receipt from the management, because of without having cash in hand we can't deposit into the bank. So management has to answer your regarding the sources of receipt.
If any further assistance please post.
If you want any further suggestion then the suggestion only possible(means how to get positive balance from negative) depending on the facts of the company i.e nature and business of company etc...(in one word i can say required some personal information also).
So first contact the management and get for sources of receipt.
However can i know what is your role(designation) in the company?
OM SAI SRI SAI JAI JAI SAI
So then you have to confirm the actual receipt from the management, because of without having cash in hand we can't deposit into the bank. So management has to answer your regarding the sources of receipt.
If any further assistance please post.
If you want any further suggestion then the suggestion only possible(means how to get positive balance from negative) depending on the facts of the company i.e nature and business of company etc...(in one word i can say required some personal information also).
So first contact the management and get for sources of receipt.
However can i know what is your role(designation) in the company?
OM SAI SRI SAI JAI JAI SAI
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