Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Bank balance

karthikrao (B.com CS(inter) -ongoing) (170 Points)

09 January 2019

What is difference between book balance in bank and credit balance (net available balance) in bank.plz explain

Reply
Follow
Share

1 Replies

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 09 January 2019

It's very simple...

If You give a Cheque in 31st day of the month to Your Supplier. He deposit the cheque on next day or day after tomorrow... (if he had bank account in Canara Bank & You have account in SBI)...

As per Your books You less the amount in the Party ledger. But, In bank account it's not debited. Bcoz, Cheque not presented or party's hand...

1 Like