Excess deposit

[Unregistered]

Client:A Liquor store, Scorp.

Cash Basis

Total of bank deposit for 2005 = 200000
Total sale, rebates, other income, loan to business etc = 180,000

What should I do with the diff. Currently in a Holding account in on balance sheet.

Just report as sale or other income?

Thanks!

[OldJack]

You should have a serious talk with the owner to determine if the owner has not been reporting all income or explain why there is such a large difference. One explanation could be proceeds from loans to the business which would not be income.