30 October 2022
Closing balances of debtors should be debit balance If it is credit balance, it means either Income not booked or Advances not received If Advance Given, change head of party to Advance from customer( current Liability) Check TDS receivable correctly booked and matched with form 26AS Ask for balance confirmation or Party Ledgers and do Debtors reconciliations Do Debtors aging to find long outstanding debtors and book provisions of bad debts.
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