CA.Sonia (professional) (517 Points)
29 November 2009If x is following cash basis and he received the invoice for purchases of Rs.30000 dated 20.03.09 made payment in the month of june?
1.Case1: It may be possible that x must have shown purchases in the month of march? and simultaneously he must have used that invoice in the month of june that he had made payment in the month of june?
2.If x has utilised that invoice twice how to catch his fraud?
shashank
(CA final student)
(259 Points)
Replied 29 November 2009
if x is maintaining books on cash basis ask for purchases break up & then cross verify whether all purchases accounted during the year are paid with in the year with the help of his bank book & cash payments if any from cash book, then the purchases for which no payment has been made during the year can be caught easily
CA.kaya
(Chartered accountant)
(3990 Points)
Replied 29 November 2009
you can compare the purchase register with bank payment. as purchase is aboue 20000(i e30000) then it should be paid in cheque...you can find it easily
Shashi Bhushan
(Learner, Jalandhar)
(996 Points)
Replied 30 November 2009
according to cash basis How can he enter purchase in the month of march if paid in june. check receipt issued by the other party. payment date will be mentioned there. cross check the purchase along with receipt issued by creditors.
Ansari
(ca final)
(444 Points)
Replied 06 December 2009
| Originally posted by :Ketan Kumar G Shah | ||
| " | You can check the bank book or cash book to trace the entry. |
" |
CA RADHIKA AGARWAL
(CA)
(300 Points)
Replied 11 December 2009
| Originally posted by :Shashi Bhushan | ||
| " | according to cash basis How can he enter purchase in the month of march if paid in june. check receipt issued by the other party. payment date will be mentioned there. cross check the purchase along with receipt issued by creditors. | " |
agree
Ambika Shetty
(Senior Consultant)
(25 Points)
Replied 11 December 2009
First of all he he is following cash basis he cannot book the purchases in March. He he do so then u can check the cash book and purchase register and try to map the credit for purchaseand payment made against the purchase. Difference will be the excess purchase book in march
CAclubindia
