Creditors reconciliation

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2014 I am doing a reconciliation of creditors as at 31st Dec,2013. I am taking our company's book balance as at 31st dec,2013 but is it necessary to have supplier statement also from them as at 31st dec,13 because if i will not receive the statement from supplier as at 31st dec,13 but may be before date from there also I can retrieve our balance as at 31st dec,13.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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07 January 2014 Reconciliation of creditors can be made only when you receive confirmation/statement from the creditors.
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Reconciliation means tallying one item with other. When you don't know the balance lying in the books of the other; how you would be able to tally the same with your books?
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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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07 January 2014 Your query is not clear. However I presume that you have been instructed by the employer to reconcile the balances of creditors.
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PRACTICAL HINT :
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Reconcile the balances of the creditors to the extent the statements are made available
by them.
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For rest of the creditors who have not supplied their statements....just note down their names and balances

and

GO FOR A BREAK. :)
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(Your duties are over).
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Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 My query is My book balance suppose as at 31st dec,13 is 5000. As per supplier the balance is 7000 but as at 30th nov,13. So is it necessary that i required the statement from supplier as at 31st dec,13 ?? because based on supplier Nov 30th balance also I can reconcile.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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09 January 2014 You need to learn BASIC ACCOUNTING first.
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Whatever I have written can be well understood by everyone who is engaged in accounting.
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Can you imagine that a person would be able to reconcile the accounts where Balance of one is available of Nov. and other is having balance of Dec.?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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09 January 2014 Please read my previous answers carefully again.
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and
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finally put your query at one stroke what remains confusion.
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Reply this to test your own knowledge:
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Upto what stage (period) you can reconcile the statements under the given circumstances.
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CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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09 January 2014
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Many times answer is hidden in the query itself.

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 If I have a balance as at dec and supplier had given me a statement till Nov I can reconcile because if i will take whatever invoices we have not posted or payment we have not considered in between nov and dec and vice versa. It can get reconciled.

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