APOORV SAXENA (Chartered Accountant) (794 Points)
25 October 2010What will be the auditors comment on the following :
In the balance Sheet of FY 2009-10, Debtors include an amount of Rs. 4 Lakhs of a Debtor who becomes insolvent on 4th April 2010.
Will a 100% provision be made
or
it will be adjusted as the event has happened before date of audit report ??
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 26 October 2010
Hi Apoorv,
In my opinion, such figure will be adjusted. Though this is an event which is happened after Balance Sheet but conditions were existing as on the B/S date.
Hence, it will not be included in Debtors. Suitable Note to Account is must.
Other valuable views are awaited.
CAclubindia
