LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Checklist for Finalisation of A/cs

Preeti Agarwal (Articled) (218 Points)

05 April 2009

Dear All,

I want to know what is the basic process to keep in mind while finalisation of any accounts i.e. during preparation of Final Accounts & B/S of a proprietorship / firm / company.

Can anyone provide me a seperate checklist to follow during finalisation of accounts of proprietorship / firm / company.

I shall be thankful for the same.

Regards

Preeti Agarwal

Reply
Follow
Share

16 Replies

Mayank Ahuja ("Learner") (586 Points)
Replied 05 April 2009

Me also wanna 2 knw.......

If u came 2 knw share wid me toooooo

Thanks

mukesh jha ( C A) (43 Points)
Replied 05 April 2009

pls see attached file for finalisation b/s

Attached File : 33 balance sheet finalisation check list.doc downloaded: 8263 times

5 Like

CMA KNVV Sri Vidya - Sri Kanth (C.A.Final (New) ICWAI FINAL (New)) (11269 Points)
Replied 06 April 2009

thanks mukesh

V P Narasimhan (Accounts Manager) (791 Points)
Replied 19 April 2009

Everything is fine but while doing so its better to check & satisfy whether all the openning balances have been carried properly since while closing the books we may pass certain entries but it will be missed out to extend in the books of account. viz., Deffered Tax income/liability,Income tax provision and so on

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 21 April 2009

Thanks Mukesh Ji.

BALAJI (ASST MANAGER FINANCE AND ADMIN) (79 Points)
Replied 21 April 2009

It is nice to see this kind of file mukesh thanks

(Guest)

Good efforts from Mukesh. Few points I want to add in this lists are:

1 Collect the Balance Certificate from Bank as on 31.03.09

2. Make adjustment entries for FC Transactions

3. Reconcile the Interest paid/payable on loans

4. Provision for Bank charges paid in April for March

5. Provision for contingent libilities

Mr Mukesh, There are no Credit balance of Cash in any cash book so not requirement for check this (if you are making false entries then it is possible other wise not)

>> Rajesh

1 Like

Preeti Agarwal (Articled) (218 Points)
Replied 12 May 2009

A very very Thanks to Mukesh ji and Rajesh ji for sharing such a useful file and information with me/us. Please share some more useful file and informatio on other topics as bank audit, firm audit etc. I shall be oblige.

Neha (auditor) (25 Points)
Replied 11 November 2009

Originally posted by :Ankur Garg
"	Please can u mail the said checklist to me too at ca.nehapuri @ gmail.com	"

milind shrikant deoghare (service/ student ) (1299 Points)
Replied 24 May 2010

please send type of accounting entries for upto finalisation

regards

milind deoghare

Anand (CWA (final) Asst Manager) (49 Points)
Replied 24 May 2010

Dear All,

Accounts finalization means -

- The process of closing the books of accounts after scrutiny and verification of all the accounts appearing in the trial balance.

- Preparation of financials at the end of accounting period which should give true and fair view of the company's financial position and as per Schedule XI of the Co's Act and in accordance with the standards issued by ICAI.

It is generally assumed that financial statements are prepared on the basis of fundamental accounting assumptions –

- The enterprise has intention for continue operation in foreseeable future

- There is consistency in accounting policies from one period to another

- Financial statements are prepared on Accrual basis only.

The checklist may vary from industry to industry. It is depend upon the type of the company / industry but final aim is same for all types of industries that the financials should show true and fair view of the company’s financial position. Therefore it is a duty of an accountant to ensure and confirm all the figures appearing in the balance sheet.

Following are few examples to ensure and confirm the some figures appearing in the trial balance-

- Rent expenses account shows debit balance of Rs. 11000 at the end of the year where the rent is paid @ Rs. 1000 per month. An accountant should verify it whether there is a need of provision of Rs. 1000 for rent payable; If not, why ? Whether the rent is payable for only 11 months ? : Same for all periodical expenses because the accounts are being maintained on accrual basis.

- The closing balance of sundry debtors/creditors can be cross checked by obtaining balance confirmations from them. This will help to identify bad debts etc and correct debtors will be appeared in the balance sheet.

- Check the list of cheques issued but not presented for payment by ensuring the subsequent clearance in the bank in next month. If anything is pending, ensure whether the cheque is cancelled or not ? This will ensure that the RECO made is perfect. and bank balance is confirmed.

- Check the expenses pertains to current financial year only. Some expenses for current period may be paid in last year or some expenses for next years may be paid in current years; necessary entries passed in the books should be ensured.

- Check gross profit margin ratio for last two years and analyze the variance, find out the reasons.

- Check various turnover ratios and compare with pervious periods.

This exercise need to be done for all the accounts appearing in the trial balance and a checklist should be prepared. It is just as “audit our self”.

Closing Entries :

- Transfer of all the expenses and income accounts to P&L Accounts / P&L Adjustments accounts to ascertain the profit or loss for the period.

- Entries for closing of assets & liabilities accounts.

1 Like

Anand (CWA (final) Asst Manager) (49 Points)
Replied 24 May 2010

Please read corrected para (no 2) as below :

Preparation of financials at the end of accounting period which should give true and fair view of the company's financial position and as per Schedule VI of the Co's Act and in accordance with the standards issued by ICAI.