satya

• Aug 20th, 2006

 

Shadow Balance in bank accounts is the balance upto which the subsequent debits can be posted upto. 

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 authorisation.  At this juncture the Account shows a Shadow Balance of 500.  I hope I am clear.

vasudeo007

 Profile Answers by vasudeo007 

• Aug 18th, 2008

 

Shadow balance is that balance which is not yet clear.

Consider any company's case.

Company has given money to someone by a cheque. Then they have shown in their cash book that money has been given. Subsequently the balance will show lower. While the same balance in bank account will look higher. The difference of unclear cheque is shadow balance.

Similarly for a cheque company has received is deposited in bank account. In cash book it will be shown as clear credit while it is yet to be cleared. That balance is called shadow balance.

Vasudeo

Arun V B

• Jul 27th, 2011

 

Shadow Balance in bank accounts is the balance upto which the subsequent debits/credit can be posted upto.

Shadow Balance = Book Balance - Debit/ Book Balance+Credit (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 authorisation. At this juncture the Account shows a Shadow Balance of 500. In the case of credit entry, Rs. 500 added and the shadow balance will be Rs.1500