Cash transactions

[Sundaraiah kollipara]

Sir,

Q.no.1. one I t. Person maximum cash on hand limit show in balance sheet at the end of the finicial year(March) in income tax act.

Q.no.2 one I.t. and gst registered trader maintained account ( Daybook and ledgers accounts) up to date.if a trader mistake some amount ₹ 5 lacs(five lacs) cash deposit in bank sb account.but negative cash balance show in daybook.

How to slove the cash balance negative problem in daybook.

[DR.MARIAPPAN GOVINDARAJAN]

You may consult a practising Chartered Accountant.

AI Summary

Cash on hand limits and negative cash balance reconciliation demand accounting correction and professional advisory for tax compliance. Question covers whether the Income-tax Act limits maximum cash on hand to be shown in the year end balance sheet and how a trader should rectify a daybook showing a negative cash balance after an erroneous bank deposit; respondent advised consulting a practising chartered accountant to perform accounting reconciliation, correct ledger entries, and ensure tax and GST recordkeeping compliance.