Home > Experts > Audit > Treatment of stale cheque


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Treatment of stale cheque (Audit)

Report Abuse
This query is : Resolved



( Author )
09 May 2011

The accounting year of the finacial year ends on 31st March, on that date the finacial statement prepared. While checking the bank reconcilation statement we have noticed that some of the cheques issued by the client and remaining outstanding as on 31st March have become stale during April, subsequent to March.
Should we ask the client to reverse the cheques as on 31st March i.e. as on the date of the financial satement.

The client is of the view that the event occurs after the date of the financial statement, these need not be reversed.


Amol Gopal Kabra (CA,CS,DISA)

( Expert )
09 May 2011

It is better to reverse the cheques on 31st March because at the time of audit, the fact is clear that the cheques are stale, so provision of reversal should be made on 31st March only.


BHASKAR AUDDY

( Author )
09 May 2011

Thanks for the info!
Can you give any reference of the ICAI publication.


Amol Gopal Kabra (CA,CS,DISA)

( Expert )
09 May 2011

There is no specific publication on this. But refer to the Accounting Standard 4 - Contingencies and Events Occurring after the Balance Sheet Date.


Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :








submit










Quick Links





back to the top