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.