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Value date in bank reconciliation statement

reena (reena9823@gmail.com) (165 Points)

06 July 2012

Hie all,

Query: While auditing the BRS, which date should be consideed while reconciliation in Tally from Bank Statement:-

1. Value Date

2. Transaction Date.

Thanks in advance.

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4 Replies

Vivek Shah (Practicing CA) (63 Points)
Replied 06 July 2012

Value date and transaction date are important only at or around the cutoff date. Transaction date is the date on which the amount has been debited or credited to your account. For eg, an amount of Rs 1 crore is credited on 6th July by way of RTGS at 2:45pm, which is just before the closing hours for the bank, in that case the transaction date will be 6th July, but the value date will be 7th July.

To answer your query, you should take the transaction date (though taking the value date isn't wrong), and support your working papers with an explanation.

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Aarush (Delhi) (1566 Points)
Replied 06 July 2012

In the case year ended i.e. 31st March deloitte's auditors always take "Value date" not "transaction date" to avoid reversal cases.

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Vivek Shah (Practicing CA) (63 Points)
Replied 06 July 2012

In this case, we need to consider two things primarily,

1) is the transaction recorded?

2) are we entitled to use the balance which is reflected in our account.

In cut off cases, the transaction is "recorded" but "valuation" is not done on that date. The assertions to be considered as per SA 315 for account balances are cut off, validity, presentation, recording, valuation at the same time. It is a difference in opinion whether you take recording first or valuation first.

The second point to be considered is as per AS 1. The concept of 'substance over form'. In substance the transaction has taken place, but the form of the transaction is not reflected.

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