When will the cash Book have a Credit Balance?
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Answer / surabhi
cash book can never have a credit balance becoz u cant pay
more than what u hold as cash..though its verrrry much
possible to have credit balance in bank account becoz dere
when payments are more than receipts bank may allow
overdraft facility but if its current account...
| Is This Answer Correct ? | 123 Yes | 9 No |
Answer / h.r. sreepada bhagi
If the Cash book shows credit balance, then the accounting
system is not properly followed. Basic logic is, you can not
pay what you don't have. Negative or credit balance appears
only if the total payments is more than the opening balance
of cash plus receipts from various sources including
withdrawal from bank as per the books of accounts.
Following are some of the reasons why cash book may show
credit balance :-
1. Not entering or short accounting of the opening cash balance.
2. Not/Short accounting all the cash withdrawn from bank/s.
3. Accounting of a payment more than once or accounting
excess amount than actual payment.
4. Use of personal cash for making official payments in the
event of shortage of cash in the office.
5. Failure to account cash receipt from the promoters or
cash received from customers or others.
This situation is avoided by reconciling the bank account
and matching the physical cash with the book balance on
daily basis. It's also important that the cash book is
checked by Accounts Supervisor or the Manager on daily basis.
| Is This Answer Correct ? | 9 Yes | 3 No |
Answer / sunilkumarsuresh
Cash Book May Come in Credit Balance.Cash Book is Nothing
But Recording of Arithemetical Transactions
If the Arithemetical Balance is Not Matching with the
Physical Cash Balance ,Cash Book May Come to Credit
Balance,we have to Maintain the Debit Balance by Carry
forwarding the amount to control accounts such as Cash
Difference Account
TanQ
| Is This Answer Correct ? | 12 Yes | 7 No |
Answer / mack
Cash Balance can only be credited if your accounting is not
properly maintained,
as one cant pay more than he have in the hand.
bank can be credit in the case of Post Dated cheques
issued,
but cash cant be negative.
its only the fault of proper accounting
| Is This Answer Correct ? | 6 Yes | 2 No |
Answer / nandini
Cash book should not show credit balance, if it shows
credit balance either the sales not recorded properly or
the cash had over drawn then the sales
| Is This Answer Correct ? | 8 Yes | 4 No |
Answer / sajal jain
Cash Book can never show credit balance. It is logical. But in bank column cast book can show credit balance. In bank column cash book can show credit balance because of the facility of overdraft provided by the bank.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / manjunath
It is unconditional accounting system. without cash balance
we can't credited in cash book, if it is made we should
maintain another a/c like sustenance a/c for our reference.
| Is This Answer Correct ? | 7 Yes | 7 No |
Answer / vadeendra
cash book may come into credit bqalance bank reconcilation
is not made properly
| Is This Answer Correct ? | 2 Yes | 2 No |
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