Can entry for provisions & reserve can be made after bs date

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2018 Facts: The bank on the basis of audit objection before finalizing Final Accounts, made entry in the books for F.Y. 2016-17 in july, 2017. My question is that: 1) Since final accounts pertains to F.Y. 2016-17, then bank has to make entry (even the entry is made after balance sheet date) on the last date of balance sheet date i.e. 31.03.2017 as it is related to the F.Y. 2016-17, 2) If it is made after balance sheet date i.e. in july, 2017 for F.Y. 2016-17, then how auditor can say that books of accounts for F.Y. 2016-17 are in agreement with final accounts as it is actually not since entry is made after balance sheet date.
Please post your opinion.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 January 2018 The accounts for Financial year 2016-17 kept open in July 2017 till finalisation of accounts, entry can be made in July but date of entry will be in March 2017. After entry is made final accounts will be corrected hence it will be in agreement with books of accounts.

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2018 thanks sir for your reply

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