You can configure Tally to prompt you with a warning when the Cash ledger reaches a negative balance.
To activate Warning on Negative Cash Balance:
| 1. | Go to Gateway of Tally > Accounting Vouchers |
| 2. | Activate the option Warn on Negative Cash Balance to Yes on the F12: Configure screen. |
| 3. | Accept the screen to save. |
Example:
Let us assume a cash balance of Rs.54000 and you need to make a payment of Rs.55000 towards advertising expenses. This results in a negative balance.
The entry is displayed as:
Tally prompts you with a box that displays the warning and also the credit cash balance in RED colour. This will help you decide whether to proceed with the entry or not.