In one of our clints accounts cash in hand on some particulars days are very much. He is asking how to adjust that excess cash So plz kindly suggest me the appropriate n practical ways to do it!!
18 Replies
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 13 March 2010
U Mean That Cash At The End of Year is Normal....
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 13 March 2010
advances for purchase of land.. reverse da same assuming that the purchase agreement is not honoured.. prepare the supporting docx 4 da same...remember that the party shud be the ACTUAL party.. n not the fake.. otherwise u may face prob during scrutiny..
Murli
(Learner)
(117 Points)
Replied 13 March 2010
@ Ayush
cash at the year end will definitely b normal..i hopeu understood wht i meant.
Ravi Chopra
(CA)
(661 Points)
Replied 13 March 2010
create an imprest account to uniformily settle that. but it must be provable
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 13 March 2010
@ Murli..!!
there are so many ways..
but in every case, u must have evidences...
without that u may face problem..
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 13 March 2010
| Originally posted by : Murli | ||
 |
In one of our clints accounts cash in hand on some particulars days are very much. He is asking how to adjust that excess cash So plz kindly suggest me the appropriate n practical ways to do it!! |
 |
i think, adjustment is not ur work.. talk to ur boss..!
SIDHARTH DHIR
(senior articled assistant)
(623 Points)
Replied 13 March 2010
any adjustment you do must be in the knowledge of your principal. so talk to him first...
Murli
(Learner)
(117 Points)
Replied 13 March 2010
Ya any adjustment made will definitely b in my boss's knowledge.
Actually i wanted to know the opinion of the respected members of CCI !
Tarun
(CA Final Student)
(89 Points)
Replied 13 March 2010
There should not be any problem coz of the excess cash if the transactions are properly supported ...
However Excess cash can be deposited in bank a/c ...
Prefferably in Current A/c's that the business is operating to keep the account turnover good as far as possible ...
Or
Ur client may consider any short term investment options ...
As this will help him keep his overdraft limit as well as enable him of some returns ...
Murli
(Learner)
(117 Points)
Replied 13 March 2010
Excess cash can be deposited in bank ...but it cant be done from back date buddy!!
AJAY PRATAP
(FINANCIAL CONSULTANT)
(72 Points)
Replied 14 March 2010
Hello Murli,
You can adjust it by transfer the cash amount for not more than Rs. 20000/- on daily basis to Business Promotion A/c or also by adjusting it through advance given for property to the individual or company who are in need of cash. As you are from CA firm so u have many client, so make a contact with ur another client who are in need of cash.
G.Murali
(finance execitve)
(83 Points)
Replied 14 March 2010
murali
cash show the take to the advance from custmers (depend upon the nature of bussiness)
Murthy
(ICWAI FINAL MBA FINANCE)
(22 Points)
Replied 15 March 2010
If the Amount is not very High.
1) in case you have considerable NO.of sales staff who go on Tours you can show it as tour advance.
The general procedure followed is: - sales staff takes advance and leaves for the tour . on his return from the tour he presents the final bill along with tour vouchers.
if the final bill amount is less than the Advance he returns the extra money and vice versa.
so u need to show that for all tours under taken by your sales staff the advance is more than the final bill and they have refunded the excess on the return
Eg: - Tour date- 14.09.09 Total Amount of expenses: - Rs.1500
Show it as 12.09.09 - Advance taken - 2500/- date of return: - 17.09.09
submission of Tour report and settlement of final bill :- 25.09.09
Refund by employee - 1000/- on 25.09.09
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