Reconciliation
This query is : Resolved
05 August 2009
Please let me know that how the reconciliation between the debotors and creditors is made while conducting audit of manufacturing company.
06 August 2009
Reconciliation can generally be made by understanding the reasons of differences
between the concerned persons/things.
As I could understand, if your question be- How the reconciliation of debtors and creditors is made ? it can be done in the following manner
Debtors:
Total Debtors ( say as on today)
= Total of Drs' Opening Balances+ Credit Sales+ Total Debit Notes to Drs(if any)-Total payments received in Cash or thru bank- Total Credit Notes.
For Crs Reconciliation you have to follow in the same logical manner.
If Particular Ledger A/cs of Drs or Creditors are to be reconciled you note down the items of differences in your Auditee's a/c and the respective drs/crs A/c individually and locate the difference.
between the concerned persons/things.
As I could understand, if your question be- How the reconciliation of debtors and creditors is made ? it can be done in the following manner
Debtors:
Total Debtors ( say as on today)
= Total of Drs' Opening Balances+ Credit Sales+ Total Debit Notes to Drs(if any)-Total payments received in Cash or thru bank- Total Credit Notes.
For Crs Reconciliation you have to follow in the same logical manner.
If Particular Ledger A/cs of Drs or Creditors are to be reconciled you note down the items of differences in your Auditee's a/c and the respective drs/crs A/c individually and locate the difference.
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