Definition Definition

Float

The time of clearing of a check which is given by debtor to cash is defined as Float. 

According to Besely and Brigham," Float is defined as the difference between the balance shown in a firm’s checkbook and balance on the banks records.”

Four kinds of float as-

(i) Billing float : Billing float refers to the total time between the sale of goods and to distribute bill to the buyer/customer.

(ii) Mailling float : According to Van Horne,” The total time between the mailing of a check by customer and the availabilitity of cash to receiving firm . ”

(iii) Cheque Processing float : According to L.J. Gitman," The delay between the receipt of a check by the payee and its deposit in the firms account.”

(iv) Bank float :  The total time which is passed after deposit a check to collection the amount of check. According to Besely and Brigham, “The amount of checks that have been received and deposited but have not yet been made available to the account in which they were deposited”.


Float is the amount of money not yet withdrawn form the company’s checking account even though checks have been written.

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