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What is shadow balance?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked over 2 years ago

Hi Friends, I am one of the CA student. May I know, What is shadow balance?

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3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Book balance is 1000. There is a debit of 500. The debit is posted in the system and is sent for authorization. At this juncture the Account shows a Shadow Balance of 500.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

> Shadow balance --Shadow Balance in bank accounts is the balance upto which the subsequent debits can be posted upto. Shadow balance is that balance which is not yet clear. --Shadow Balance = Book Balance - Debit (yet to be authorised for posting). --Example: Book balance is 1000. There is a debit of 500. The debit is posted in the system and is sent for authorization. At this juncture the Account shows a Shadow Balance of 500. --An asset account which is expected to have a credit balance (which is contrary to the normal debit balance of an asset account). The contra asset account is related to another asset account. For example, the contra asset account Allowance for Doubtful Accounts is related to Accounts Receivable. The contra asset account Accumulated Depreciation is related to a constructed asset(s), and the contra asset account Accumulated Depletion is related to natural resources.

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Open uri20170510 32134 1uwcnoc?1494421631 Shubhangi Jain answered over 2 years ago

Shadow Balance in bank accounts is the balance up to which the subsequent debits can be posted up to. Shadow Balance= Book Balance-Debit(yet to be authorized for posting). Example:Book balance is 1000. There is a debit of 500. The debit is posted in the system and is sent for authorization. At this juncture the Account shows a Shadow Balance of 500.

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