Cash reduce

3665 views 5 replies

Dear all,

                 I work in a small private firm. I faced a problem for the assessment year 2011-12. The Balance Sheet shows that I have cash in hand near Rs.2,50,000/- but I need to reduce it to Rs. 30,000/- but the profit can not be reduced as it will be below 8% then. Plz suggest me how can I reduce the Cash without affecting my Gross Profit. Thank you.

Replies (5)

increase debtors by Rs 220000 and reduce cash by same.

Thanks for reply. But Is there another way of reduction as all our receipts take place by way of cheque so it'll be problematic for next year to adjust. Thank you.

then show adavnce to supplier.

Thanks for the help. Can I show it by showing advance to supplies as well as some purchase of fixed assets. Like furniture or jewellery.

Yes you can

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