Atharv Sankliya (1356 Points)
13 March 2023
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 13 March 2023
CA Rakesh Ishi
(Working at Private Company)
(8532 Points)
Replied 13 March 2023
If someone deposits cash in a company's bank account without describing the purpose of the deposit, the company can still identify the source of the deposit through the bank statement or the bank's online transaction history. However, if the depositor's information is untraceable, it may become difficult for the company to identify the purpose of the deposit.
In such cases, the company can record the deposit in a suspense account, which is a temporary account used to hold transactions until more information is available. The suspense account acts as a holding account until the company can determine the purpose of the deposit and where it should be allocated.
Once the purpose of the deposit is determined, the company can transfer the amount from the suspense account to the appropriate account such as cash or accounts receivable. If the company is unable to determine the purpose of the deposit, it may need to report the amount as unclaimed or unidentifiable income, depending on the nature of the business
Eswar Reddy S
(CFO- at NHTF)
(58275 Points)
Replied 14 March 2023
Atharv Sankliya
(1356 Points)
Replied 15 March 2023
CAclubindia
