We are following cash accounting system. We do not maintain any balances of sundry debtors/sundry creditors. We book income/expensive as when is received/paid.My question is if party ask for balance confirmation as 31/03/2009 and statement of account,what should I do?, should I give payment received/paid statement or statement of account(as per mercentile).
28 March 2009
You can give their balance confirmation if you maintained the sufficient records for the same and also mentioning the fact that since we are maintaining the books on cash basis;the above only should be taken as for referential purposes only.
CAclubindia
