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Correction of negative cash balance

Kollipara Sundaraiah (B.com) (2984 Points)

08 December 2019

a I.t. trader maintained accounting books and sale,purchases and all business expenses transaction up to date.if negative cash balance some different dates( total 4 lacs) show in daybook.
how to correction of negative cash balance in daybook.

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3 Replies

(Guest)

Then there are some unaccounted revenues.

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Srishti Agrawal (Practice, Teacher) (172 Points)
Replied 18 December 2019

You should reconcile every item again, if there is no discrepancy then check whether some expenses were done through personal money which is now bought into business technically as capital.

So to say, either some payments have be done from more money from personal cash of the trader or some revenues received are not written up.