treatment of cash in books with no physical existence

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  1. Mitali Godha

    Mitali Godha New Member

    sir, i work in a real estate company which sells plots to customers. Company has cash of Rs. 4 crores in its books agaiunst receipts from customers but that cash has no physical existence. Also as cash has no physical existence we cannot deposit the same in bank. Can there be a possible method by which we can show investment of that cash in any other project. plzz rply urgently?
     
  2. VAIBHAV DILIP RANE

    VAIBHAV DILIP RANE Active Member

    These are normal cases in most of Construction Firms,...

    In Books of Accounts, heavy Cash Balance is amounted and In real Physical Existence, no such Cash Balance exist in Hand,...

    It is because of, many builders take Cash from their customers which is unseen,.. mostly done to avoid Heavy Stamp Duty or other Duty or Charges,...

    Many Builders do Cash Ruling Separate, they don't bring Cash in Existence...

    See in such Case, we will not Advice anything...

    * But always remember,...

    Accounting entries should be of Real Transactions only, to avoid further problem.
     
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