( Expert )
17 July 2010
Some Points for Ledger scrutiny of Debtors >
1.Check the amount are entered in the proper debtor account.
2. Analyze Debtors Ageing i.e. 3months, 6 months , 1 year, 2 year or greater depends upon the requirement.
3.Check for the payment modes whether cash or cheque.
4.Payment is being made regularly or not.
5.Any special agreement or say any sister concern in the debtor list. If debtor includes sister concern whether documents are properly.
6. Analyze the special agreements for discounts based on volume or payment basis.
made or not.
7. Check the arithmetical accuracy of the accounts.
8. Also, check the Major Customer Balance Confirmation at the year end or half yearly based upon co's requirement and policies.
Also most of the concepts are applied above can be used for Creditors.
Regarding ledger of advances, apart form above points. Following can also be checked while scrutinizing ledger >
1. Need and condition of advances.
2. In case of big advances, evaluate the specific need and utility of such amount.
3. Check periodic confirmation given or received with the concerned party.