Whether the practice of issuing a cheque without having sufficient amount in bank account, is ethical or not. If it is unethical, then identify that who gets harmed. Introduction: Float is defined as the difference between the balance shown in ledger of the company and the balance that is available at the bank. Available balance refers to the balance that is shown by the banks of that particular company. Disbursement float is the difference between the payment paid to the customers and distributors that is subtracted from the ledger and the amount that is be deducted from the available bank account in the later days.

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Chapter 27, Problem 12CQ

Summary Introduction

To identify: Whether the practice of issuing a cheque without having sufficient amount in bank account, is ethical or not. If it is unethical, then identify that who gets harmed.

Introduction:

Float is defined as the difference between the balance shown in ledger of the company and the balance that is available at the bank. Available balance refers to the balance that is shown by the banks of that particular company.

Disbursement float is the difference between the payment paid to the customers and distributors that is subtracted from the ledger and the amount that is be deducted from the available bank account in the later days.

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