Dear Experts,
One of our client have Audited Balance Sheet, while checking accounts founds Creditors Opening Balances not Matching with suppliers ledger / Books.
plz suggest how can we rectify the same, can we mention a note in balance sheet of difference in opening balance or what necessary we can do to save client
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Sundry Creditors Opening Balance Difference
Replies (6)
As I understand, the difference needs to be reconciled. If the value is nominal, the difference can be transferred to a sundry creditors account.
Showing it as difference in opening balance is not appropriate.
Thanks for advice, but amount is not nominal, how can we rectify the same, plz advice, reconcile is not possible bcz of manual accounts maintained by client, in 2020-21 he maintained in tally, so plz suggest what can we do, as sundry creditors will increase.
You have to reconcile the supplier figure with the tally maintained figures and recitfy the same otherwise provide a note in financial statements
Dear Sourav Sir, I Mentioned we have tally figures of last year only and prior to this period all books manually maintained, not properly. can we collect ledger from supplier and ask from client is this balance is ok, and date of payment and how payment made, than can we take with as working paper and put journal in this year. now question what journal entry should we give will be better in all reapect
1st -Confirm about the variation, intimate the supplier -He agrees, their accounts mistake, you obtain Signed account statement from the supplier, the correct one with you.
And comment the same in the Audit Report, 'Sundry Creditors are subject to the confirmation of the parties'.
And comment the same in the Audit Report, 'Sundry Creditors are subject to the confirmation of the parties'.
Yes you can nitin
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