What will be the auditors comment on the following :
In the balance Sheet of FY 2009-10, Debtors include an amount of Rs. 4 Lakhs of a Debtor who becomes insolvent on 4th April 2010.
Will a 100% provision be made
or
it will be adjusted as the event has happened before date of audit report ??
Hi Apoorv,
In my opinion, such figure will be adjusted. Though this is an event which is happened after Balance Sheet but conditions were existing as on the B/S date.
Hence, it will not be included in Debtors. Suitable Note to Account is must.
Other valuable views are awaited.
thanxx yogesh !!
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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