ceased cash

[Mayank Gupta]

if some cash amount is ceased by the income tax authorities the in the books of accounts what will be the entry of this . and under which head this will be shown in the balance sheet.......... and will the answer will be same if the cash is ceased since 2 years ago

AI Summary

Accounting for Seized Cash: Entry as 'Cash Seized' with Department Debit; Tax Liability Provision Required A query was raised about the accounting treatment and balance sheet entry for cash seized by income tax authorities. The concern was whether the entry would differ if the cash was seized two years prior. The response indicated that the entry would be recorded as 'cash seized' with a debit to the department. Additionally, a provision for tax liability must be made according to legal requirements and expert opinion.