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Outstanding Balnce confirmation

Others 509 views 5 replies

Prathyusha Varma

ArticleShip

393 Points Posted on 13 April 2021

Dear Experts,

Case 1:

Vendor accounted invoice in their books as on 31st March 2021 amount 70,000 and we provisioned amount 65000 for the same invoice.

Now vendor is asking us to give balance Confirmation for 70K. Should we give for 70K or Zero since we haven't accounted but provison

Case 2 : Vendor accounted for 20k and didn't disclose on the same.so we haven't provisioned

Now he asking us give confirmation for 20k

what can be done ?

Replies (5)

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 13 April 2021

The actual outstanding balance should be given as on 31.3.21 which is 70K.

In case 2 balance confirmation should not be given as vendor didn't show such balance and hence provision has not given.

Prathyusha Varma

ArticleShip

393 Points Posted on 13 April 2021

Case1: Sorry actual outstanding in our books is ZERO so how can we give for 70k

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 13 April 2021

As you have said that outstanding is 70K in query that's why I answered as per your query..

If actual outstanding amount is zero then in balance confirmation also zero amount should be shown and no amount should be claimed by vendor..

Prathyusha Varma

ArticleShip

393 Points Posted on 22 April 2021

Should balance Confirmation should include our provision amount made aslo ?

CA Amrita Chattopadhyay

Audit & Assurance

13864 Points Posted on 30 April 2021

When you ask for balance confirmation, it is the amount which is shown in the books which is needed to be disclosed. In case the balance in your books is Zero, you have to give negative confirmation stating that the balance in your books is Zero, followed by a reconciliation statement where you will be disclosing the provision created (for whatever reason).

Hope I am able to clarify your query