Dear Friends,
Can you please clarify this doubt ?
A non Profit making organisation has closed and got it's books of accounts audited for the year ended 31.03.2011.
During the year, the following errors were noticed :
The accountant took the balance as per bank Pass Book as on 31.03.2011 instead of balance as per Bank Book.
On scrutiny, it was found that there were certain expenses which were not at all entered in the Bank Book of last year.
The accountant has started the Bank book as on 1st. April,2011 with the Audited Bank Balance which is the balance as per last year's Bank Pass Book.
How to correct the above mistakes this year and how should they be reflected in the accounts for the year ended 31.03.2012 ? How should the Bank Account as on 31.03.2012 be corrected ?
Thanks & Regards.
CAclubindia
