If we do not reconciliation our pass book balance with cash book balance will it effect our company's balance sheet or my balance sheet will get match ???????
my secong question is do we reconcile fixed assets account ??? if yes how???
akash (no) (160 Points)
04 July 2012If we do not reconciliation our pass book balance with cash book balance will it effect our company's balance sheet or my balance sheet will get match ???????
my secong question is do we reconcile fixed assets account ??? if yes how???
Devendra
(Chartered Accountant)
(4775 Points)
Replied 05 July 2012
1) It is very important to reconcile the Bank pass book balance with the Cash book maintained by the company. If it is not reconciled then the Statement of Accounts will not show a True and Fair view of the affairs of the Company.
2) There is no reconciliation part in Fixed Assets as such, but the Current Year Depreciation should be calculated as per the SLM rates (Straight Line Method) given in the Companies Act, 1956, the WDV and accumulated depreciation till the previous year should be be brought forward correctly and all the addition / deductions of Fixed Assets made during the year should be disclosed in the Fixed Assets Schedule.
Regards,
Devendra Kulkarni
CAclubindia
