Day: December 29, 2021

This refers to expenditure essentially of a revenue nature which, instead of being charged off as and when it is incurred, is accumulated in an account appropriately headed to indicate its nature and the balance in the account is written Read More …

In a Balance Sheet all the under mentioned cash balance are included under the above head :  cash balance in hand; petty cash balance in hand; balances of stamps in hand; cash in transit;  cash at branches; and  cash with Read More …

These should be verified by reference to bank reconciliation statement, and the balance certificates received from banks. If a Bank Reconciliation statement includes a large number of uncleared items as on the date of the Balance Sheet, the auditor should Read More …

In general the procedure outlined in regard to debtors is also applicable in the case of loans (and advances). Apart from verification of the balances of loans, the auditor should inspect loan agreements and acknowledgements of parties in respect of Read More …

These include amounts recoverable either in cash or in kind for value to be received, e.g., rates, taxes and insurance. The auditor should obtain a list of all advances and compare them with balances in the ledger. He should ascertain Read More …

If possible, the auditor should attend on the last day of the accounting period to inspect the bills in hand and agree their total with the balance in the Bills Receivable Account. If verification is postponed till some time after Read More …