Od account
This query is : Resolved
10 August 2011
my friend working a pvt ltd company and company having od a/c limit of5cr and the march expenses showing 6cr in od a/c cheque issued the party after april cleared
limit is 5cr but a/c showing 6cr
it will make any problem in it or bank
limit is 5cr but a/c showing 6cr
it will make any problem in it or bank
10 August 2011
The party will make a Bank Reconciliation
Statement and can explain the difference to the tax authorities as well as to the bank also.
.
In routine it happens that certain cheques are not presented by the creditors and it is also done by the companies to show lesser creditors.
.
An auditor generally checks such aspects and there is not much problem as such.
Statement and can explain the difference to the tax authorities as well as to the bank also.
.
In routine it happens that certain cheques are not presented by the creditors and it is also done by the companies to show lesser creditors.
.
An auditor generally checks such aspects and there is not much problem as such.
10 August 2011
Since the accounts are maintained on mercantile basis you have to show the entries relating to the current year. No doubt you have issued cheques beyond your drawing power of limit but your banker has not cleared all the cheques. Till Banker clears the cheque there is no problem. The loan from bank will appear at 6Cr. and if cheques are issued against the expenses these expenses will appear in P & L a/c. Nothing to worry
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