What is the meaning of credit side of the cash book bank column cast short
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hello Muskan
As we know that
Cash is a current asset. And it is comes under the REAL Account.
The rule of Real Account says " Debit what comes in, Credit what goes out"
Since we are maintaining our Cash Account, it includes two sides
Debit and Credit
The Debit balance shows how much money do we have or how much money Debtors owns to us.
The Debit balance is favorable for the business man.
Now let's talk about the Credit side.
The Credit side of the Cash Account shows How much money we need to pay to others. Credit balance shows the deductions of cash and Credit balance is a liability for the business man.
hope it helps
#jerri
As we know that
Cash is a current asset. And it is comes under the REAL Account.
The rule of Real Account says " Debit what comes in, Credit what goes out"
Since we are maintaining our Cash Account, it includes two sides
Debit and Credit
The Debit balance shows how much money do we have or how much money Debtors owns to us.
The Debit balance is favorable for the business man.
Now let's talk about the Credit side.
The Credit side of the Cash Account shows How much money we need to pay to others. Credit balance shows the deductions of cash and Credit balance is a liability for the business man.
hope it helps
#jerri
Answered by
1
dat mnz the payment had been made but the amount iz wrongly enterd as less than the actual cost...eg. suppose 5000 are to be paid bt wrongly writtenas 2000 paid...so in this case credit side is undercastor cast short by 3000.
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