Mega Offer Avail 65% Off in CA IPCC and 50% Off in all CA CS CMA subjects.Coupon- IPCEXAM65 & EXAM50. Call: 088803-20003

CA Final Online Classes
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Outstanding Balnce confirmation


Prathyusha Varma (ArticleShip)     13 April 2021

Prathyusha Varma
ArticleShip 
 27 likes  352 points

| My Other Post
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 ?
Sourav

Sourav (Student)     13 April 2021

Sourav
Student 
 717 likes  12074 points

View Profile | My Other Post
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

Prathyusha Varma (ArticleShip)     13 April 2021

Prathyusha Varma
ArticleShip 
 27 likes  352 points

View Profile | My Other Post

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

Sourav

Sourav (Student)     13 April 2021

Sourav
Student 
 717 likes  12074 points

View Profile | My Other Post
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

Prathyusha Varma (ArticleShip)     22 April 2021

Prathyusha Varma
ArticleShip 
 27 likes  352 points

View Profile | My Other Post
Should balance Confirmation should include our provision amount made aslo ?
CA Amrita Chattopadhyay

CA Amrita Chattopadhyay (Audit & Assurance)     30 April 2021

CA Amrita Chattopadhyay
Audit & Assurance 
 471 likes  8895 points

View Profile | My Other Post

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


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  





Trending Tags