AUDIT OF IMPERSONAL LEDGER PDF

Auditing Vouching of Ledger – Learn Auditing in simple and easy steps starting from Following steps are involved in the audit of impersonal ledger account −. this post explains about impersonal ledger and its auditing. The auditor’s duty is to inspect the relevant accounts in the ledger, demand notes, receipts, etc., and find out what period is covered.

Author: Mezil Moogujar
Country: Guinea-Bissau
Language: English (Spanish)
Genre: Politics
Published (Last): 22 March 2005
Pages: 122
PDF File Size: 19.62 Mb
ePub File Size: 17.17 Mb
ISBN: 978-9-97241-697-9
Downloads: 39015
Price: Free* [*Free Regsitration Required]
Uploader: Fenrinris

The Auditor should confirm that any unpaid amount of rent for the last month of the financial year or any other month of financial year in question should be added to rent of the current year and the rent payable immpersonal be shown as current liabilities. Arithmetical accuracy of impersonal ledger is no proof that the profit or loss has been correctly arrived at.

Outstanding Rent, Rates and Taxes: The auditor can vouch goods returned recorded in purchases return journal. The auditor can vouch the amount of dividend in arrears. The entry can show the amount of rent due. There are two opinions on showing audit fee for auditing current year’s accounts as an outstanding liability.

Therefore it is must for an Auditor to check each and every outstanding entries. As these incomes have lrdger in the current year, it is but natural that such incomes should be credited to current year’s Profit and Loss Account.

The auditor can check the amount paid and actual tax liability at the year-end. Purchases made at the close of the year: He can compare it with sales ledger to determine amount due, 3.

Verification of opening balances, castings, balances carried forward should be carefully examined. Already Have an Account? The auditor should vouch such allowances in purchase journal and purchases account. The borrower and lenders can inform debtors for such deal. The sellers can offer allowances for -promoting sales or avoiding sales returns. Expenses of heavy repairs of fixed assets shall not be debited to profit and loss account of year in which these expenses incurred but it should be spread to number of years like other deferred revenue expenses.

  BENVENUTO TERZI CARILLON PDF

Contingent assets are not shown as footnote of the balance sheet. The amount of carriage outstanding can be checked with bill of carrier. To check unrecorded purchases, the auditor should compare Goods Inwards Book with Purchases Book for few days before the close of the year. It can become business asset in future. The audit of purchase ledger is necessary to check disputed amount. In case where the purchased goods are received in the current financial year and invoices for the same are received in next year, purchase should be debited and outstanding liabilities should be credited.

The second ledger creditors who supply goods on credit. All vouchers must be available to check the transactions.

For example, till lsdger end of the year on 31st December, rent for December might not have been received. Both these arguments appear to be sound. The interest may become due at the end of the year.

Vouching of Impersonal Ledger – Vouching, Auditing & Secretarial practice

Such liability is to be stated in footnotes. The purchase adjustment account should tally with account maintained in it. Unpaid or outstanding expenses: The auditor should carefully scrutinize such items and ensure that all receipts which pertain to the next year o be treated as on earned income and are shown as a liability in the Balance Sheet. The auditor should check amount of such liability. For example, the accounts may be closed on 31st March but the wages and salaries for March may be paid on 1st April.

After adjusting ledgrr the above, if there is impereonal amount that is payable to the agent, it will be shown in current liabilities as commission payable and if any excess amount is paid that will be shown as current asset representing the amount recoverable from the agent.

  LC7818 DATASHEET PDF

What Is Ledgers | Different Types Of Audit Of Ledgers | Free Online Notes

The auditor can see that all accounts have been recorded, 3. The auditor should check postings of various cils11 payments and receipts in respect of nominal accounts in the impersonal ledger. All such expenses should be charged to the current year’s Profit and Loss Account and shown as a liability in the Balance Sheet.

Outstanding Assets and Liabilities Arithmetical accuracy of impersonal ledger is no proof that the profit or loss has been correctly arrived at. Mine Company can provide a guarantee for others to provide loans. Salary and wages for the last month of the accounting year is normally paid auidt the next financial year. Expenses which pertain to the current year and should have been paid but have not actually been paid during the same year are called unpaid or ‘outstanding expenses’.

The auditor must examine debts outstanding for a period of three years. Therefore, contingent liabilities leder said to be possible liabilities. Capital account, real accounts, debtors and creditors account are lmpersonal to auit sheet. Some say it should not be shown as current year’sexpenditure because the audit work of current year’s account is done in the next year and so it is next year’s expense.

He can find these liabilities by inspecting the payment side of the Cash Book of a few. If the difference is large the matter should be investigated further. The general ledger provides accounts for preparing profit and loss account. The auditor can vouch each account to see that opening balances are ledgeg.