Discussion:Credt Cash Balance on F/S
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Accounting Questions --> Credt Cash Balance on F/S
| 5 March 2008 | |
| I'm looking for opinions on the proper 'label' for the liability account I need to create on my client's F/S because they ended the year with a credit balance in their cash accounts. I have looked but can't find a standard. Or I should say the one I found sounds silly. ButI'm thinking banks don't like "NEGATIVE CASH BALANCE" so I would think there must be something better ..... So I would love other input.
Thanks. | |
| 5 March 2008 | |
| "Cash overdraft"
or "Checks drawn in excess of cash balance" or include it with "Accounts payable" I prefer the first for its simplicity. Clients seem to prefer the last because then it is not explicitly shown. | |
| March 6, 2008 | |
| If significant, the balance should be shown separately in the current liabilities section. An appropriate title would be "Bank overdrafts" or "cash overdrafts" as noted by UT. | |
RoyDaleOne (talk|edits) said: | 7 March 2008 |
| If the book overdraft was cause by checks written, but held, the amount of the held checks should be reversed, or include in accounts payable for the payable items. Other items would have to be analysis.
Cash basis taxpayer and you are doing GAAP statements, my guess. | |
Landon5784 (talk|edits) said: | 7 March 2008 |
| I call the account "Checks written but not released" | |
| March 7, 2008 | |
| Roy, I agree with you regarding any checks that were held, but what do you mean by Other items would have to be analysis? | |
Bottom Line (talk|edits) said: | 7 March 2008 |
| If you try to "hide" it in A/P, any decent credit analyst will ask why the checking account is not shown on the balance sheet. They would then wonder what else you were trying to "hide". | |
To join in on this discussion, you must first
log in.
